Friday 29 Mar 2024
By
main news image

SINGAPORE (Aug 20): Banking stocks are typically a favourite dividend play of investors who hunt for yield. This is because as banks grow, they tend to reward shareholders with a steady payout that usually increases gradually.

At its recent results briefing for 1HFY2018 ended June 30, DBS Group Holdings proposed to pay its biggest first-half dividend of 60 cents a share. At 53.9%, this is the highest dividend payout ratio among the local banks, compared with 36% for Oversea-Chinese Banking Corp (OCBC) and 41% for United Overseas Bank (UOB), and is nearly double the 33 cents a share it paid out a year ago. Based on its Aug 14 closing price of S$25.26, DBS has a 12-month trailing dividend yield of 6.7%.

DBS’s generous payout comes as the country’s largest lender by asset size posted a positive set of results for the half-year period — albeit below consensus expectations. Its performance was underpinned by broad-based growth in loans and fee income, as well as... (Click here to read the full story)

      Print
      Text Size
      Share