Let’s not forget that HSBC is very exposed to growing economies around the world, especially that of China, which could mean dividend increases for years to come. The big question then – what kind of percentage return could investors have to look forward to?

Big dividends

In the short term, the answer is easy to calculate. The forward dividend yield stands at 4.06% – a decent total above the FTSE 100 average. While it’s not guaranteed, that’s the amount forecasters are expecting.

How about the longer term? Much depends on the growth rate of the dividend. Taking the current 10-year growth rate of 3.93% – and assuming that all dividends are reinvested in more shares – the yield on the original stake would be 5.61% after five years and 8.73% after 10 years.

Only time will tell whether those numbers are close to the mark. And indeed whether HSBC could be the FTSE 100’s best dividend too. But I’ll point out that this calculation ignores share price increases, which could make a big difference too.

Of course, dividend payments are simply the consequence of what we really want when buying a stock – thriving company operations. So can HSBC deliver in the future?

Is it a buy?

One of the brighter aspects of the HSBC bull case is its focus in Asia and China. As you might expect from the Hongkong and Shanghai Banking Corporation, a significant amount of business is done in this corner of the world – around 50% of all revenues.

The advantage to this is the growing nature of emerging economies. China, the 800-pound gorilla of the continent, is still growing GDP at around 5% a year. That’s a good place to be for banks that flourish in booming economies.

But a downside is the possible issues with such countries. In China’s case, the lack of regulatory oversight is one thing to be aware of. There are also doubts from some quarters that figures (such as the aforementioned GDP growth rate) might be less accurate than those of other countries.

Personally? I think all banking stocks are intriguing propositions after years in the doldrums following the 2008 crash. With HSBC offering one of the most unique propositions on the FTSE 100, I think it’s worth considering. Those excellent dividends may continue long into the future too.

Should you invest £5,000 in HSBC Holdings right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if HSBC Holdings made the list?

John Fieldsend has no position in any of the shares mentioned.

The post Did HSBC just become the FTSE 100’s best dividend stock? appeared first on The Twelfth Magpie.

Against that backdrop, here are two FTSE 100 dividend powerhouses that I believe still deserve investors’ attention today.

Banking giant

HSBC (LSE: HSBA) is perhaps one of the clearest examples in the FTSE 100 of how strong capital allocation can drive shareholder returns.

Over the past few years, the bank has become a simpler and more focused business. It has exited lower-return operations, reduced management layers, and redirected resources towards areas where it enjoys genuine competitive advantages, particularly wealth management and transaction banking.

The result has been a significant improvement in profitability. Last year, return on tangible equity reached 17.2%, while profit before tax climbed to a record $36.6bn.

Importantly, these earnings are not simply being retained on the balance sheet. It has adopted a clear capital returns framework centred around a 50% dividend payout ratio alongside regular share buybacks.

What gives me confidence in the quality of those returns is the bank’s growing exposure to Asia and the Middle East. These regions are becoming increasingly important centres of trade, investment, and wealth creation.

The main risk is that a meaningful slowdown in Asia, particularly China, would weigh on growth and profitability. Falling interest rates could also pressure banking margins.

However, HSBC’s strong deposit base, diversified earnings streams, and disciplined capital allocation leave it well placed to continue rewarding shareholders through the cycle.

Different play

Where HSBC represents a more traditional income play, Glencore’s (LSE: GLEN) shareholder returns are increasingly being driven by capital allocation.

Management has shown a willingness to unlock value from non-core assets and return excess cash to shareholders when opportunities arise.

The recent early return of capital to shareholders following the sale of Viterra to Bunge is one such example.

Looking ahead, I think the bigger opportunity lies in copper. Electrification, grid expansion, data centres, and industrial investment are all placing growing demands on the metal. Against that backdrop, Glencore is targeting a significant increase in copper production over the next decade.

What I find attractive is that management appears to be balancing investment and shareholder returns rather than pursuing growth at any cost. The company is investing where it sees attractive long-term returns while maintaining a clear commitment to returning surplus capital when appropriate.

A clear risk is that commodity markets remain volatile. A weaker global economy or lower copper prices would reduce cash generation and could affect future distributions. But with management continuing to recycle capital and position the business towards what it sees as the most attractive commodities, I believe Glencore remains well placed to create long-term value for shareholders.

Bottom line

HSBC and Glencore operate in very different industries, but both illustrate the same principle. Strong shareholder returns are rarely the result of yield alone. More often, they are the product of disciplined capital allocation and management teams that understand when to invest, when to simplify, and when to return excess cash to investors.

Should you invest £5,000 in Glencore Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Glencore Plc made the list?

Andrew Mackie owns shares in HSBC and Glencore.

The post 2 FTSE 100 dividend stocks that stand out for shareholder returns appeared first on The Twelfth Magpie.

The shares have risen 214% over that period, meaning the original investment would now be worth around £15,700. But that’s only part of the story. Once dividends are included, total shareholder returns would have climbed to approximately £18,260.

That equates to a compound annual return of 29.6% — comfortably ahead of the FTSE 100 over the same period. Even more impressively, based on the original purchase price, the dividend yield today would be a hefty 12.7%.

The obvious question is whether investors can realistically expect anything close to that level of return over the next five years.

A stronger bank

One reason I think HSBC can continue creating value is that it looks like a stronger business today than it did five years ago.

The bank is becoming simpler and more focused, exiting lower-return operations while cutting costs and streamlining management. That matters because higher returns don’t always come from growing bigger. Often they come from running a business more efficiently and allocating capital more effectively.

The results are already showing up in the numbers. Last year, return on tangible equity reached 17.2%, while profits climbed to a record $36.6bn.

Positioned where growth is strongest

The second point is geography.

While many investors still view HSBC through a UK lens, I increasingly see it as a bank positioned at the centre of some of the world’s most attractive growth markets. Asia and the Middle East are becoming increasingly important drivers of global trade, investment, and wealth creation.

That matters because wealth management is one of the most attractive areas of banking. As individuals become wealthier, demand grows for savings, investment, and advisory services. The company already has a strong presence across these regions and is using that network to capture more of those flows.

The numbers suggest it’s working. Wealth revenues rose 24% last year, while the bank attracted $80bn of net new invested assets. With Asia expected to account for a growing share of global wealth over the coming decade, I think this remains one of the most compelling parts of the long-term investment case.

Risks to consider

HSBC’s global reach is a strength, but it also creates risks. A large share of profits comes from Asia, meaning any prolonged slowdown in China or disruption to regional trade could weigh on growth. Tariffs and geopolitical tensions remain key uncertainties here.

The second risk is interest rates. Falling rates helped support economic activity, but lower borrowing costs can also pressure banking margins over time. While HSBC benefits from a strong deposit base and diversified income streams, weaker global growth or a sharper-than-expected decline in rates could make sustaining today’s strong profitability more challenging.

Bottom line

HSBC has been a terrific investment over the past five years, helped by a changing backdrop for banks and a more focused business model. I doubt the next five years will deliver quite the same spectacular returns, but I still see it as a high-quality long-term holding. It remains a core position in my own ISA portfolio and one investors may wish to consider.

But while HSBC remains a core holding, it’s not the only growth stock on my radar.

Should you invest £5,000 in HSBC Holdings right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if HSBC Holdings made the list?

Andrew Mackie owns shares in HSBC.

The post £5,000 invested in HSBC shares in an ISA 5 years ago is now worth… appeared first on The Twelfth Magpie.

It’s why I hold a Cash ISA, Stocks and Shares ISA and a couple of Self-Invested Personal Pensions (SIPPs), and invest in them at every opportunity. But am I overreacting?

Latest research from Scottish Widows suggests no. The financial services giant says that…

31% of UK adults are currently at risk of failing to cover their basic needs in retirement – that’s equivalent to a worrying 12.2m people.

What’s going on?

So, 12.2m people add up to 12.2m reasons to think hard about my own retirement. Scottish Widows based its findings “on savings, behaviours and income sources” and by “comparing expected income to potential living and housing costs in retirement.” To me, it made for chilling reading. But on the other hand, I wasn’t that surprised by those findings.

Why? It’s not just that people aren’t investing or saving enough for later years. To me, it also largely reflects the meagre size of the State Pension today, and what benefit levels are likely to be in the coming decades.

UK retirees only get 22% of their income from the state. According to the Mercer CFA Institute Global Pension Index, that’s the worst among all the G7 nations. Will things get better? I’m not so sure.

Official forecasts suggest the UK’s pension-age population will rise by almost a quarter between now and 2049, to 15.3m people. How that bill gets paid is the awkward bit few politicians want to talk about.

What should you do?

The good news is it’s never too late to start saving and investing for retirement. Even those who are struggling as the cost-of-living crisis drags on can use tax-efficient ISAs to harness the power of the stock market and create wealth.

Let’s say you’re a 50-year-old with just £250 a month to invest. If you can achieve the typical 9% average return long-term investors tend to enjoy (which isn’t guaranteed), you’ll have a of £142,689 by the time you reach State Pension age.

This would then throw off a yearly passive income of almost £10,000 if invested in 7%-yielding dividend shares.

Doing the work today

Obviously the earlier you start and the more you invest, the larger your retirement pot can be thanks to the long-term impact of compounding. But if you can’t do either of those things, you can still get ahead by doing careful research to find the very best stocks to buy.

HSBC (LSE:HSBA) is a share I’ve bought to help me fund my own retirement. Why? During the last decade, it’s delivered a stunning average annual return of 10.6%.

To put that into context, a £250 monthly investment here would have become an impressive £53,009 today. I wouldn’t suggest investors take the risky step of just buying this one share. But I think it’s a great addition to consider for a diversified portfolio.

Competition is greater than it’s been at any time for FTSE 100 banks. But I’m optimistic HSBC’s huge scale and focus on fast-growing Asian economies should mean further incredible share price gains and dividends over the long term.

Should you invest £5,000 in HSBC Holdings right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if HSBC Holdings made the list?

Royston Wild owns shares in HSBC.

The post 12.2m reasons why I’m building a passive income to supplement the State Pension! appeared first on The Twelfth Magpie.

What’s especially attractive for me is the brilliant (and growing) flow of dividends the bank provides. Over the last five years, these have risen at a stunning average annual growth rate of 38%.

As a result, HSBC’s dividend yield in the last half a decade has averaged 6.5%. That’s miles above the FTSE 100 long-term average of 3%–4%.

You’ll see the bank’s dividend record is a little patchier before 2021 though. Disruption in 2020 was related to Covid-19 dividend restrictions by UK regulators rather than problems at the bank. Payout freezes before then reflected balance sheet strengthening following regulatory changes and a pivot to share buybacks.

But largely speaking, HSBC has built a reputation as a top dividend share. The question is, what makes it such a passive income powerhouse? And can it continue delivering rapid payout growth?

What’s behind it?

As a retail bank, HSBC provides essential banking services that provide reliable income streams. Its loans deliver interest, for instance, and its insurance products regular premiums it can use to pay dividends. In recent times, margins at its retail unit have benefitted from higher interest rates too, boosting profits and cash generation.

HSBC has advantages over some other FTSE 100 retail banks like Lloyds though. Its focus on fast-growing Asia has led to explosive profits growth that have also fuelled dividends. The company also has a huge wealth management division that generates fee-related income and has experienced rapid growth.

Finally, HSBC’s widescale restructuring of recent years has boosted its capital efficiency and earnings. Slashing costs, streamlining operations, and dumping underperforming units has unlocked extra cash flows it’s used to pay a rising dividend.

Can dividends keep growing?

With any stock, dividends are never guaranteed. And especially in the case of cyclical shares like banks. At HSBC, shareholder payouts could be frozen or even fall if its Asian markets experience economic downturns. The risk of this happening has grown in 2026 in light of the Iran War.

Yet on balance, I’m optimistic HSBC shares can keep delivering market-beating dividends. City analysts think payouts will keep growing, from 75 US cents last year to:

• 84 cents in 2026.
• 93 cents next year.
• 102 cents in 2028.

This suggests an average annual growth rate of 10.8% over three years. It also means HSBC carries a FTSE-100-beating yields ranging from 4.5% to 5.5%.

So why am I confident in these forecasts? Firstly, they’re well covered by expected earnings, with dividend cover sitting bang on the safety benchmark of two times or above. The bank’s CET 1 capital ratio is also an impressive 14%, providing an extra buffer if profits disappoint.

Should you invest £5,000 in HSBC Holdings right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if HSBC Holdings made the list?

Royston Wild owns shares in HSBC.

The post How have HSBC shares become a dividend machine? 5 reasons why! appeared first on The Twelfth Magpie.

That morning, I logged on to find the shares had fallen more than 5% as markets reacted badly to its first-quarter results. Immediately, I perked up.

If the HSBC share price had jumped 5%, I wouldn’t have gone anywhere near it. Early spikes often fade as profit takers emerge. But sharp dips can create opportunities, provided the underlying business still looks solid. The more I read HSBC’s numbers, the more confident I felt.

Underlying revenue climbed 4% to $19.1bn, but there were weaker spots. Return on tangible equity slipped from 17.9% to 17.3%, but I wasn’t too concerned. Excluding one-off items, it actually came in at 18.7%. Management also kept existing 2026 guidance intact.

Why did I buy HSBC shares after the dip?

HSBC is a vast organisation with countless moving parts, but I felt the machinery was still pulling in the right direction. I also wondered how long I’d have to wait to get another buying chance like this. With a forward price-to-earnings (P/E) ratio around 11.2 and a forecast dividend yield of 4.6%, the valuation looked attractive to me.

The shares retain bags of momentum. Even after the dip, they’re up more than 50% in a year. So I dived in.

So far the decision has worked out nicely. My shares have already climbed roughly 9%. But these are early days. At The Twelfth Magpie, formerly The Motley Fool UK, we aim to buy shares with a long-term view. I’m talking five, 10, 15, or 20 years and beyond. The real rewards of investing come from years of compounding through both capital growth and dividends. Buying on dips means we start from a lower point.

Should I buy more HSBC shares now?

One reason I like HSBC is its international reach. More than half its revenues come from Asia, giving it exposure to faster-growing markets than the UK alone. It’s also expanding in the Middle East. While it still has significant UK operations, that makes it very different from domestically focused banks such as Lloyds, which I bought three years ago.

As ever, there are risks. HSBC is exposed to the shadow banking sector, and recently suffered a $400m loss from a UK-based fraud case. Chinese growth has slowed. The Hong Kong commercial property sector is struggling and HSBC is exposed. Geopolitical tensions with the US are likely to continue. Net margins remain at the mercy of inflation and interest rate swings. Share buybacks are on hold for now.

I only have one regret about my HSBC purchase. I didn’t buy enough. Now I’m tempted to come back from more in June. The valuation still looks reasonable to me with a forward P/E of 11.6. The forecast yield is 4.46% for 2026 and expected to hit 4.98% in 2027. At some point, I expect buybacks to resume and that should give the shares another lift. So yes, I think HSBC shares are still worth considering today. With a long-term view, of course.

Should you invest £5,000 in HSBC Holdings right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if HSBC Holdings made the list?

Harvey Jones owns shares in HSBC Holdings and Lloyds Banking Group.

The post I bought HSBC shares in May. Shall I buy more in June? appeared first on The Twelfth Magpie.

You’d therefore expect, after such a run for the banking giant’s share price, that the dividend yield for it would be quite low.

But you might be surprised to hear that the yield is still pretty high. In fact, the company’s 4.1% yield is still higher than the FTSE 100’s average yield of 3%.

Therefore, the company’s shares remain a great passive income choice to consider. So how many of its shares are needed to make an extra grand a month?

The passive income path

With a dividend yield of 4.1% and a current share price of 1,374.80p, an investor would need to buy 21,447 shares to aim for £1,000 a month as a second income.

But if all this money is invested in just one stock, investors won’t be able to benefit from diversification.

For example, there are signs that HSBC is facing a more challenging economic environment than before. This is evident after reading its first-quarter results for 2026, where expected credit losses (ECLs) are $1.3bn.

Compared to ECLs of $901m in the last quarter of 2025 and $876m in the first quarter of 2025, we can see that this is clearly increasing.

Having a diversified portfolio of stocks would therefore help to minimise the risk any HSBC issues could have on an investor’s portfolio.  

Moreover, it would cost £294,853.36 to buy this number of shares. I appreciate that not many reading this will have that much spare change to hand.

However, while it may be difficult to achieve immediately, I’ll now illustrate how an investor could achieve this over time.

The effect of compounding

Let me start by outlining some assumptions for the basis of my illustration.

Firstly, I’ll assume that the company’s shares and dividends grow at a stable 3% a year. This will also keep the dividend yield stable.

Secondly, an investor puts down a more modest £20,000 initial investment and then invests an additional £250 a month into the bank’s shares.

With this in mind, in just over 24 years, the value of these shares will reach the threshold needed to make an extra £1,000 a month.

It’s important to understand that dividends aren’t guaranteed, but this is a great example of how investors could make an extra income over time.

Now what?  

With a forward price-to-earnings ratio of 11.1, HSBC shares aren’t exactly expensive. That’s despite the 58.5% rise in the bank’s shares over the last year.

So, even though the share price has appreciated quite a bit, this is still a good valuation and entry point to consider buying some of its shares to generate passive income.

But it’s not the only dividend stock I think investors should consider to make an extra grand a month…

Should you invest £5,000 in HSBC Holdings right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if HSBC Holdings made the list?

Muhammad Cheema does not hold any positions in the companies mentioned.

The post How many HSBC shares are needed to target a £1,000 monthly passive income? appeared first on The Twelfth Magpie.

Iran isn’t the only thing worrying markets. There’s constant chatter about an artificial intelligence bubble as hyperscalers pour trillions into infrastructure, while giant potential IPOs such as SpaceX, OpenAI and Anthropic fuel the frenzy. Then there’s the shadow banking sector, which has already caused painful losses for two major FTSE 100 banks, Barclays and HSBC Holdings. There’s always something to worry about.

Iran looked the biggest danger because the closure of the Strait of Hormuz risked triggering a historic energy shock. Yet the FTSE 100 rose 2.66% last week. It’s up 5.18% this year. That’s not spectacular, but hardly a disaster either.

Why aren’t investors more worried?

It’s a bank holiday today (25 May), otherwise I suspect markets would be flying on reports that Donald Trump says he’s struck a deal with Iran. It has apparently agreed to surrender uranium and open Hormuz. I wouldn’t assume anything is settled though. The uncertainty could easily drag on. That doesn’t mean we can’t enjoy ourselves though.

There’s always something to worry about. If it wasn’t Iran, it would be AI, shadow banking, the Labour leadership, poor productivity, toppy valuations, whatever. It’s best to look past that, and stick to the fundamentals.

At The Twelfth Magpie, we prefer to buy individual stocks rather than track the index. A key advantage is that whatever the state of the overall market, there are always bargains to be found. That’s why I bought HSBC Holdings (LSE: HSBA) on 5 May.

Are HSBC shares still worth buying?

I’d wanted the stock for ages but feared I’d missed my moment. HSBC shares have climbed roughly 210% over five years and typically yielded around 5% too.

Higher interest rates boosted profits across the banking sector by widening lending margins. Asia-focused HSBC has benefited enormously from that global trend, making huge pre-tax profits:

• 2025 – $29.91bn
• 2024 – $32.31bn
• 2023 – $30.35bn
• 2022 – $17.06bn
• 2021 – $18.91bn

As you can see, profits dipped slightly in 2025 but that followed a record 2024, and was largely due to one-off impairments. I swooped after its shares dipped more than 5% on mildly disappointing Q1 2026 results, which showed rising costs and credit losses. Its generous share buyback policy remains on hold.

Can it deliver over the long term?

I thought it was a brilliant opportunity to get in at a slightly reduced valuation. I’m already up 5% but these are early days. As with every stock I buy, I’ll measure my success in years.

HSBC’s forward price-to-earnings ratio is 11.5. That doesn’t strike me as expensive for a global banking giant with this level of profitability, cash generation and shareholder returns. The forward yield is 4.5%. Of course, if markets suffer a proper correction, HSBC shares will probably fall too. If that happens, I may buy more. There will be ups and downs but over the longer run I think this will prove a terrific investment. And I can see plenty more FTSE 100 bargains out there today.

Should you invest £5,000 in HSBC Holdings right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if HSBC Holdings made the list?

Harvey Jones owns shares in HSBC 

The post Can we finally stop worrying about the stock market crash and start having fun? appeared first on The Twelfth Magpie.

The old saying that stock markets climb a wall of worry is as true today as it ever was, as the oil price climbs, inflation threatens and the Iran war drags on. There was plenty to worry about last year too, when Donald Trump’s tariffs rattled the global economy.

2022 was no picnic either, with Russia invading Ukraine and the oil price spiking. 2020 gave us the pandemic. Yet over five years, the S&P 500’s up 79%. Or around to 85% with dividends reinvested.

Can stock markets make me rich too?

At The Twelfth Magpie, we see investing as a long-term thing. While stock markets can be volatile in the short run, over time returns beat every major asset class. British investors can tap into that success by contributing to a Stocks and Shares ISA.

But here’s the thing. We don’t see five years as the longer run. I’m not sure we see 10 years as the long run. With luck and good health, most of us can expect to be working for 40 or 45 years, and these days possibly longer. Now that’s the long term.

Over 40 years, the S&P 500 has delivered an average annual return of 11.81%. Let’s say somebody invested £10,000 in the index back in May 1986. There weren’t so many tracker funds around then, but this is a theoretical exercise. Today, they’d have a meaty £869,412. That’s a stunning increase of 8,594%.

Now let’s say they also contributed £200 a month during that time. In that case, they’d have a whopping £2.8m. Annual fees will have eroded that return, but it does show the long-term wealth building power of shares.

Building a portfolio of individual stocks can turbo-charge returns, albeit with a bit more risk. I can see plenty on the FTSE 100 I’d consider buying today with a view to holding for years, ideally decades.

Should I consider this blue-chip?

In fact, I recently snapped one of them up – Asia-focused bank HSBC Holdings (LSE: HSBA). It’s up an impressive 51% over the last year, and a thumping 198% over five. Dividends are on top, with the trailing yield 4.1% today.

Many investors underestimate the power of dividends but over time, they typically account for at least half the total return from the FTSE 100. That assumes you reinvest them straight back into the stock, to benefit from the compounding effect. You can withdraw them as income once you retire.

The HSBC share price can be volatile too. On 5 May, it fell 5.2%, despite the bank posting a 4% increase in Q1 revenue to $19.1bn. Rising costs and credit losses meant profits came in flat. Share buybacks remain on hold. But I decided the stock was due a breather after such a mighty run, and took advantage of the dip to get in at a cheaper price.

And I think HSBC’s still worth considering today, as part of a wider portfolio of at least a dozen stocks. Having taken the plunge, I might buy more of its shares.

Should you invest £5,000 in HSBC Holdings right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if HSBC Holdings made the list?

Harvey Jones owns shares in HSBC Holdings 

The post See what £10,000 invested in the S&P 500 some 40 years ago is worth today appeared first on The Twelfth Magpie.

Crunching the numbers

The size of the retirement gap matters — but so does how an investor plans to fill it.

To generate the roughly £31,353 needed on top of the full State Pension, the required portfolio size varies considerably depending on the level of income produced:

• £627,060 at a 5% yield
• £522,550 at a 6% yield
• £447,900 at a 7% yield

That difference is striking. A seemingly small change in yield can reduce the capital required by well over £100,000.

But this is where retirement planning becomes more nuanced.

Higher yields may appear to offer a shortcut, yet they can sometimes come with trade-offs. Income that looks generous on paper may reflect slower growth, greater economic sensitivity, or dividends that prove difficult to maintain through weaker periods.

For me, that highlights an important point. Retirement income is not simply a numbers exercise centred on maximising yield. The real objective is building a portfolio capable of producing reliable income without relying on unsustainably high payouts.

Viewed that way, the State Pension becomes less of a complete retirement solution and more of an income foundation — one that can be strengthened over time through carefully selected investments and reinvested income.

That’s where stock selection becomes critical.

Income power

For investors trying to build meaningful passive income alongside the State Pension, HSBC (LSE: HSBA) is one stock I think deserves consideration.

At first glance, the appeal is obvious. The bank currently offers a dividend yield of roughly 4.2%, supported by significant earnings and strong capital returns through both dividends and share buybacks.

But what matters is not simply the headline yield.

Income stocks work best when dividends are backed by durable earnings power, and that is where the HSBC investment case becomes more interesting.

Recent results showed revenues rising around 6%, helped by stronger wealth management activity and higher net interest income. While credit losses increased and understandably unsettled investors, management maintained medium-term profitability targets, including a return on tangible equity of 17% through to 2028.

That matters because banks operate differently from many traditional income stocks. Their ability to sustain shareholder payouts depends heavily on the broader interest rate environment.

For much of the previous decade, ultra-low rates compressed profitability across the sector. Today, that backdrop looks very different. Sticky inflation, elevated debt levels, and geopolitical uncertainty all suggest a return to near-zero rates is unlikely any time soon.

If that proves correct, HSBC could continue benefiting from structurally stronger net interest income than investors became accustomed to during the post-financial crisis period.

Of course, risks remain. Rising credit losses are an early warning signal that economic conditions may be becoming more challenging, and banks are inherently more cyclical than utilities or consumer staples.

Even so, for investors focused on building passive income over time, HSBC highlights how income power and earnings resilience can sometimes matter more than chasing the highest yield alone.

Should you invest £5,000 in HSBC Holdings right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if HSBC Holdings made the list?

Andrew Mackie owns shares in HSBC.

The post How much passive income would you need on top of the State Pension to retire comfortably? appeared first on The Twelfth Magpie.