86% Dividend Payout Attracts the Investors

Hargreaves Lansdown PLC (LON: HL) provides investment products and services, as well as financial planning and advice to its clients. It has been listed on the London Stock Exchange. The company was established in 1981 and today it is a mid-cap firm as its market capitalization is £3.8 Billion.

In 2022, the company reported a revenue of £735 Million. After reducing operating costs and direct costs, the firm is left with Earnings before interest and taxes of £384 Million. It is 54% of the revenue. moving on to the net profit, the firm was able to keep a positive net income of £323 Million with an impressive margin of 44%.

With a positive net income over the years, the firm didn’t think short of its shareholders, as it has been giving regular dividends. In 2022, It paid out more than 80% of the net profits. The Dividend per share was reported to be £0.4, which was 5% of the average market price in the year.

Furthermore, The HL stock price is in a slight downtrend when looked at from a daily chart point of view. The bears seem to be strong as the bullish investors are facing difficulties in pushing the price past a resistance level of £901.

Technical Analysis and Prediction of HL Stock Price

At present, the HL stock price is trading at £829, which is in the resistance zone of £826. The bulls are aiming to sustain past this supply zone. However, looking a little back, we can see the HL stock price has rebounded from the support level of £753.

Beyond the support and resistance levels, indicators like the RSI are depicting an uptrend. When the stock reclaimed its support, the RSI also rebounded from its oversold level of 30. At present, it is in its overbought zone of 67. If the HL stock price makes a breakout past the current resistance, the RSI will reach its 70th level.

On the other hand, the MACD indicator is also replicating the trend of the RSI line. The MACD line made a bullish crossover with its EMA a few weeks ago. At present, the MACD is at 0.604 while its EMA is at -9.13

Conclusion

Hargreaves Lansdown Plc (LON: HL) provides investment products and services along with financial advisory. The company is holding a significant chunk of its revenue as net profit. It is also distributing the majority of it as dividends. The HL share price has been slightly bearish since the start of the year, but now the bulls are trying to break past the resistance level.

Technical levels

Support: £753 and £693

Resistance: £826 and £869

Disclaimer

The views and opinions stated by the author or any other person named in this article are for informational purposes only. They do not provide financial, investment, or other advice. Investing in or trading crypto assets and stocks comes with a risk of financial loss.