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Was feeling a little tired after a morning of activities.
Medical appointment followed by grocery shopping.
Lost some blood and still had to carry heavy bags.
After settling down at home, I read the news and I suddenly felt energized!
DBS increased their dividends to 48 cents a share per quarter!
Huat ah!
The decision to invest in DBS back in 2016 at $13 to $14 a share and continuing to accumulate over the years whenever Mr. Market felt depressed is paying off handsomely.
Annualizing 48 cents a share, annual dividend per share is $1.92 which means the dividend yield on my initial investment is in excess of 14% per annum!
Of course, with DBS being one of my largest investments, this is probably going to have an outsized impact on my passive income for the year.
I so stunned like vegetable!
What is even more impressive is that the higher dividend is probably sustainable.
DBS revealed that the expected catch up in funding cost has not been as bad as feared.
In fact, net interest margin saw a further increase of 12 basis points, quarter on quarter.
Net profit grew 48% year on year and 5% quarter on quarter!
I have said before that DBS is able to trade at a juicy premium to book value because of its very impressive return on equity or ROE when compared to UOB and OCBC.
DBS saw its ROE hit a new quarterly high of 19.2%, up from 13.4% in the same quarter last year!
DBS has a CET1 ratio of 14.1% which is in excess of what it feels is optimum.
So, we could possibly see higher dividends to come if DBS has no better use for the money.
DBS could, of course, simply hold on to the money for a rainy day.
Whatever the case might be, DBS is a rock solid investment for both income and growth.
Yes, just like what I said about investing in UOB, we can have our cake and eat it too.
OCBC should deliver good results tomorrow too.
I am feeling so giddy now, I need to go lie down for a bit.
If AK can do it, so can you!
Reference:
DBS fair value per share?
Transcript of my YouTube video @AK71SG.
Bloggy Award
4 comments:
Hi AK,
Indeed Huat Ah! to all local banks’ shareholders. 🤑
If I were to make a wild guess for tomorrow’s OCBC 1H23 results, it should be impressive too. OCBC has the potential to increase the dividend payout to shareholders too. One reason being their key insurance arm’s GE Holdings have just announced good results with much higher dividend payouts. As a long-term investor for income in all three local banks and GE Holding, just feel delighted. More so with their (share prices) capital appreciation.
📝 Great Eastern Holdings reports earnings of $193.2 mil for 2QFY2023, up 251% y-o-y. Earnings for the 1HFY2023 rose by 95% y-o-y to $437.2 million while earnings per share (EPS) stood at 92 cents.
An interim dividend of 35 cents per share has been declared. It will be paid out on Aug 31. (📝 This is up from past years declared interim of 10 cents.)
The good results from GE Holdings should have a positive impact for OCBC bank as they holds a majority 88.4% stake in GE. 👍🏼
https://www.theedgesingapore.com/capital/results/great-eastern-holdings-reports-earnings-1932-mil-2qfy2023-251-y-o-y
Hi Eddy,
Thank you for sharing the good news from GEL! :D
You huat, AK huat, everybody huat!
My investment in OCBC is much larger than my investment in DBS or UOB.
So, if OCBC were to increase dividends again tomorrow, I think I would feel so giddy that I must lie down for a whole day.
I think I should go lie down in advance. ;p
:) A good harvest season.
Got both DBS and OCBC.
Time to upgrade my gears.
Mu hahahahaha.
Hi TDT,
Gong xi gong xi! :D
Go help the economy. ;p
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