It Is Rewarding To Buy And Hold Singapore Bank Stocks

🌟🌟🌟I am super excited that the Singapore Stock Market has hit new highs this week and 2 of my Singapore Bank Stocks DBS and OCBC rose to new 52 week highs on Thursday.  UOB reached its 52 week high in July.  My strategy of Buy and Hold these wonderful Singapore Bank Stocks are paying off!

The Market Monitor in my Tiger App alerted me yesterday as $DBS Group Holdings(D05.SI)$  reached its 52 week high at SGD 38.00.  DBS is Singapore's largest bank with a  market capitalisation of SGD 107.58 billion.  It is also Asia's safest bank and have won many awards over the years.   This includes "World's Best Bank" from 2018 to 2022 by Euromoney, " Best Bank in the World" by Global Finance in 2018 and 2020 as well as "Global Bank of the Year" from Financial Times in 2018.

In the latest Q2 24 earnings, DBS's net profit for the quarter rose 6% to SGD 2.79 billion from the previous year period, beating expectations of SGD 2.71 from 5 analysts, according to LSEG data.  DBS's total income increased by 9% to SGD 5.48 billion. 

DBS has rewarded me with an increased dividend of 54 cents per share compared to 44 cents in the same quarter last year.  DBS has also rewarded me with a 10 for 1 bonus shares in April this year too. 

DBS has a great track record of rewarding shareholders consistently and steadily with growing dividends and capital gains over the past decades.  It will continue to thrive regardless of different financial environments.  Even if interest rates fall, DBS will be boosted by higher volume of lending to businesses and its retail customers. 

With a current dividend yield of 5.3%, DBS is a great source of passive income while waiting for capital growth.

Performance wise DBS is up 3.1% in the past 5 days and 24.9% year todate.  In 2023, DBS has risen by 24%.  Financial analysts are Bullish on DBS with a Buy rating, Target price ranging from SGD 43.10 to SGD 38.50 according to Tipranks. 

Tan Su Shan will be DBS's new CEO from March 2025 when the current CEO, Piyush Gupta retires.  She has solid credentials, having more than 35 years of experience in consumer banking, wealth management and institutional banking.  I believe that DBS will be in good hands under Ms Tan as she has been with DBS since 2010.

$ocbc bank(O39.SI)$  is Singapore's 2nd largest bank with a market capitalisation of SGD 68.85 billion.  OCBC has just reached a new 52 week  high on Thursday, hitting SGD 15.38.  

Under CEO Helen Wong, OCBC had a stellar Q2 24, leading the pack among the 3 major local banks with an impressive 14% surge in net profit, reaching SGD 1.9 billion.  This outstanding result was fueled by growth across all key areas of their business. Net interest income saw a healthy 2% increase, reaching SGD 2.4 billion. 

OCBC has rewarded me with an interim dividend of 44 cents per share, up 10% from a year ago.  This represents a payout ratio of 50% of the earnings for the first half of 2024.  The current dividend yield of OCBC is 5.6%.

Performance wise, OCBC is up 4.9% in the past 5 days and 18% year todate.  In 2023, OCBC has risen by 21%.

Analysts are Bullish on OCBC with a Buy rating, Target price ranging from SGD 18.50 to SGD 13.09.

$UOB(U11.SI)$  is the 3rd largest Singapore Bank with a market capitalisation of SGD 54.44 billion.    Among the 3 local banks, UOB has the largest number of branches in South East Asia.  UOB acquired Citibank's consumer banking business in Malaysia, Indonesia, Thailand and Vietnam for SGD 4.9 billion in January 2022.

UOB 's Q2 24 results were mixed with Core net profit holding steady at SGD 1.5 billion compared to previous year. Its net interest income dipped 1% due to lower margins. 

UOB' s extensive network across South East Asia provides diversification benefits and opportunities for growth in emerging markets with significant potential. 

Performance wise UOB is up 2% in the past 5 days and 13% year todate.  In 2023, UOB has risen by 12%.

Financial analysts are Bullish on UOB with a Buy rating, Target price ranging from SGD 36.50 to SGD 34.50.

UOB has rewarded me with steady and regular dividends over the years.  The current dividend yield is 5.3%.

I have invested in DBS, OCBC and UOB since 2020 and I am happy with their performance.  All 3 banks have rewarded me with nice juicy dividends which is a great source of passive income while waiting for capital growth.  The best part is all these dividends are tax free in Singapore and there is no conversion fees required since they are denominated in Singapore dollars. 

As the late Charlie Munger likes to say, "The Big Money is not in the Buying and Selling but in the Waiting". 

That is so true for me. Just Buy and Hold these wonderful Singapore Bank Stocks and my favourite holding period is Forever. 

For those who are new to Singapore stocks, there is currently a fantastic promotion with Tiger Brokers where there is no commission charged and you get to win fabulous prizes such as Staycation at the Fullerton Hotel, shares of Nvidia and stock vouchers.  The promotion is part of Tiger Brokers ' National Day Celebration and ends on October 31 2024.

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