Good news from UOB and OCBC!
When DBS declared a special dividend, I wondered if UOB and OCBC would do the same.
Unfortunately, there is no special dividend from UOB and OCBC.
However, they did declare higher final dividends!
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Source: UOB. |
UOB increased their final dividend by 15c or 25%.
This isn't too shabby since it is very close to a 50% payout ratio.
We can probably expect this to be the norm in future as it isn't a special dividend and, thus, unlikely to be a one off event.
As for OCBC, they hiked their final dividend by 12c!
While it is lower than UOB's 15c hike in absolute terms, it is much higher in percentage terms.
An increase of 12c from 28c to 40c is an almost 43% hike!
I am so stunned like vegetable!
OCBC is not only one of my largest investments.
OCBC is my largest investment in equities.
My investment in OCBC is much larger than my investment in UOB.
So, my passive income in the form of a final dividend from OCBC is going to be very much larger this year compared to last year.
This is especially when I increased the size of my investment in OCBC many times in 2H 2022.
Although my war chest was rather depleted, I was able to do this by reducing my investments in Centurion Corp. and ComfortDelgro which were both underperforming.
In my blog on Wilmar's record dividend, I said I was feeling a little giddy.
I think it just got worse.
Want evidence?
See the new photo of AK below.
Alamak!
I slapped myself hard and reminded myself that the higher dividends from our local lenders will go some way to filling shortfalls from Sabana REIT, CapitaLand China Trust and IREIT Global this year.
Still early days, to avoid possible disappointment, I am keeping expectations low with regards to full year passive income for 2023.
After all, I cannot dictate how much my investments should pay me.
I will continue to exercise prudence when it comes to expenses as, generally, this is something I have considerable control over.
However, to be honest, I am feeling more sanguine about this year's passive income now.
Whether the year would end on a high note for me as an investor for income should become clearer in another 6 months or so from now.
Till then, I just have to be patient and wait.
"Wall Street makes its money on activity. You make your money on inactivity."To fellow UOB and OCBC shareholders, congratulations! Huat ah!
References:
1. Reallocation of resources.
2. DBS, OCBC and UOB.
3. DBS: Special dividend.
4. 4Q 2022 passive income.
5. Largest investments (4Q 2022.)