10 Best European Dividend Stocks To Buy

5. HSBC Holdings plc (NYSE:HSBC)

Dividend Yield as of December 20: 4.14%

Number of Hedge Fund Holders: 14

HSBC Holdings plc (NYSE:HSBC), established in 1865 and based in London, is a global leader in financial services, operating through three key divisions – Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets. It is one of the best European stocks to invest in.

HSBC Holdings plc (NYSE:HSBC) derives about half of its revenue from Asia, reflecting its strong focus on the region, with the rest coming from global operations like commercial banking and wealth management. In Q3 2024, the bank reported $17 billion in revenue, a $1.1 billion year-over-year increase, and announced $4.8 billion in shareholder returns, including a $0.10 per share dividend and a $3 billion share buyback. With a low PE ratio, HSBC appears undervalued and poised for growth. To enhance efficiency and address market challenges, HSBC plans $300 million in cost savings through senior-level job cuts, a restructuring of its banking operations, and the creation of a dedicated wealth division. Starting in 2025, the bank will split into East and West divisions, with Hong Kong and the UK functioning independently.

HSBC Holdings plc (NYSE:HSBC)’s UK operations had an exceptional year in 2024, achieving their best financial performance since the separation of retail and investment banking in 2018, with net profits surging over 80% year-on-year. The acquisition of Silicon Valley Bank’s UK division, now rebranded as HSBC Innovation Banking, has significantly boosted the bank’s net interest margin and fee income, contributing to its strong results.

Insider Monkey’s third quarter database indicates that HSBC Holdings plc (NYSE:HSBC) was found in 14 hedge fund portfolios, the same as the prior quarter. Ken Griffin’s Citadel Investment Group is the largest stakeholder in HSBC, with 687,682 shares worth $31 million.