0554 GMT - DBS signaled better clarity on its shareholder returns' commitment, RHB Research's Singapore Research team says in a note, raising the stock's rating to buy from neutral and its target price to S$36.10 from S$34.70. Management is committed to boosting dividend per share by 24 Singapore cents per year and believes this DPS can be sustained for next 2-3 years, the team notes. Also, the Singapore lender said there's scope for other capital management initiatives such as share buybacks, the team says. RHB's assumption of DBS's 2024 DPS of S$2.16 suggests payout ratio of 63%, which translates to post-bonus-share yield of 7.3% and is "too good to ignore," the team adds. Shares are 0.4% higher at S$32.59. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
February 08, 2024 00:54 ET (05:54 GMT)
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