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Huat with DBS in Year of the Dragon!

Wednesday, February 7, 2024

DBS reported stellar full year 2023 results.

Net profit rose 26% to S$10.3 billion.

Return on equity improved from 15% to 18%.

2023 saw a 22% increase in total income largely due to higher net interest margin, fee income and treasury customer sales.

A final dividend of 54c was proposed and this is 6c higher than before.

2023 full year dividend at $1.92.

DBS is also proposing a bonus share issue of 1 share for every 10 shares.

Bonus shares will qualify for dividends from 1Q 2024.

Assuming DPS stays the same, this will boost dividend received by 10% in 2024!




My decision to add to my investment in DBS in November last year was fortuitous.

This makes me happy.

Mr. Market seems to like the news as well as DBS share price has gone up by 2.6% so far today.

Gong Xi Fa Cai!

Wishing all readers a Happy Chinese New Year!

Reference:
Added to position in DBS.

18 comments:

nch said...

Hi AK,

First of all, 我要和你拜个早年,新年快乐,龙年行大运, 身体健康。

Congrats to all DBS share holders as well.

I have a qns about bonus shares. This year instead of offering shareholders a special dividend, a 1 for 10 bonus shares was proposed instead.

What are your thoughts about being given bonus shares instead of special dividend? The increase of the bonus shares should cause the price of the stock to fall by 10% in theory. (as there are more shares outstanding) and the benefit short term is that we will get more dividend for 2024 due to the number of shares increase in our holdings and we are participating the long-term growth of the company.

If let's say the shareholders were given special dividend and we were to use the $ to buy the shares in the market instead, would this scenario benefit the shareholder more?

Thanks, may all of us huat huat in the new year.

DBS Fan said...

I added $100K to my DBS position when it dipped! Hope dividend payout can continue rising!

AK71 said...

Hi nch,

Happy CNY!

I like the bonus shares more because they are forever while special dividends can come and go. :D

Also, with DBS share price much higher than my average price, the anchoring effect is making it harder for me to increase my investment significantly.

10% at a much higher share price is a big deal to me! ;p

I don't know how share prices would move after the bonus issue but I know dividends will grow. :)

Technically, $30 is still a strong long term support and that is where I would probably buy more.

Of course, we could see the stock price going below $30 per share but as long as DBS continues to grow its earnings, that would just be another buying opportunity to me. ;)

AK71 said...

Hi DBS Fan,

I guess your nickname says it all. ;p

Huat ah! :D

zhenling said...

when there is good news, I feel the fomo and urge to buy more dbs!

but must remain calm. current sizing in sg banks is good. I don't know where interest rates will go. I need to hedge against the case where economy tanks and/or interest rates get cut very fast.

for now, just celebrate my decision to continue holding sg banks. huat ah!

Brina said...

Thanks for talking to yourself about the banks in the past AK, got into the banks after you talked about increasing your shareholdings in each of the banks and now reaping the rewards :) huat ah! Happy CNY AK!

AK71 said...

Hi zhenling,

Don't FOMO!

Very good to remain calm. :)

Rejoice that we are invested and buy more when Mr. Market is feeling pessimistic again.

Huat ah! :D

AK71 said...

Hi Brina,

Sounds like you attended "Evening with AK and friends 2023" early last year.

When someone asked me if we should buy banks or REITs, I said "banks!" ;p

Enjoying the fruits. ;)

Happy CNY and huat ah! :D

Chenheyuan87 said...

hello ak.. will you cut ur reit exposure and use the proceeds to increase bank exposure?

ace3256 said...

Hi AK, ace here again! Congrats on DBS! And also a self-congratulations for me making the decision to buy DBS after reading/watching some of your blog posts and Youtube videos!

Now thinking if it's time for me to initiate on OCBC as well (which I have no position in yet) haha.

But on less huats news, Wilmar has been dropping ever since so that kind of offsets my DBS gains. But it is what it is.

Wishing you an even more huats year of the dragon!!!

Yv said...

Hi AK

Wishing you a Huaty CNY. Very happy with DBS news to reward shareholders, wished I have a bigger position.

Hoping good news to follow soon with the other two peers.

hammer said...

Dear AK, is Wilmar looking pretty attractive at current price? Thank you and Gong Xi Fa Cai!

Learner said...

Hi AK,

Wish you a very happy Chinese New Year! :D

AK71 said...

Hi Chenheyuan87,

I have not done so and I have no intention to do it.

This is because the REITs I am holding are either doing well enough or undervalued.

AK71 said...

Hi ace3256,

We have to take the good with the bad which comes with diversification. ;)

People who buy the STI Index must realize they are buying a basket of stocks too and they can never hope to outperform the market. ;p

If our portfolio is relatively heavy in local banking stocks, we should do quite well.

Happy CNY! :D

AK71 said...

Hi Yv,

The local banks should continue to bring home the bacon.

If we are lucky, the portion might be larger this year too. ;p

Happy CNY! :D

AK71 said...

Hi hammer,

I feel that Wilmar at $3.00 or lower a share is a fantastic bargain! :)

Happy CNY! :D

AK71 said...

Hi Learner,

Happy CNY to you too. :D


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