duseve
2022-04-12

$UOB-KAY HIAN HOLDINGS LIMITED(U10.SI)$Five reasons to buy NOW:

UOB Kay Hian is UOB's stock brokerage firm. For the month of April, its price has beensteadily increasing. Why?


1. Generous dividend payout.

At its current price of $1.64, UOB Kay Hian will pay out dividends of 5.37% after the ex dividend date of 5/5/22. This is also equivalent to $0.088 per share. For an investment of $16,400, you would receive $880 in dividend payout. This is a very high, attractive dividend yield for a stable stock. 

2. Historical price highs. 

Looking at the 52 week high for this stock, prices were $1.77 per share at its peak. At its current price of $1.64, this stock is tradingat a discount.

3. Resilient stock. 

While the Singapore stock market has been on a downward trend for a few days, UOB Kay Hian has largely maintained its value. This is due to both investor confidence, and theworth of the company.   

4. Earnings in troubled times. 

As a traditional stock brokerage company, itwill tend to keep its value, even in troubled times. The US stock indexes such as NASDAQ have been on a downward trend, due to hiking interest rates and rising fears of inflation. This in turn affects the Singapore markets. However, as people sell off stocks they lose confidence in, this allows brokerages to charge commissions and make earnings. Even in troubled times, UOB Kay Hian will keep its value. 

5. Upcoming share buyback. 

UOB Kay Hian intends to renew its share buyback programme at its AGM on 28 April. If approved, the company will begin a buybackprogramme that will increase the value of each stock, from 28 April onwards. Additionally, UOB Kay Hian intends to pay up to 105% of the share price for on market purchases. If the share maintains its current value of $1.64, an on market purchase will see the shares traded at up to $1.722 per share. It may also choose to make off market purchases with direct offers to shareholders, and in this case, will pay up to 120% of the share price. At its current price of $1.64, shares could bebought back at $1.968 per share after 28 April. The last time the company approved a share buyback programme was in 2016, so thisis a rare opportunity for investors. 

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Dazza7
    2022-04-14
    Dazza7
    Not a bad deal considering what this stock is all about. I agree with the buy
    • duseve
      Thanks :) hope we earn together
  • Gregho
    2022-04-14
    Gregho
    This is a stock that i have forgotten since my early trading days. Good to have it onboard again
    • duseve
      Oh, nice. What was your experience with it in your early trading days?
  • MaudNelly
    2022-04-12
    MaudNelly
    Seems UOB Kay Hian started to rise from recent days
    • duseve
      Yes, possibly because of the upcoming share buyback and earnings
  • ClarenceNehemiah
    2022-04-12
    ClarenceNehemiah
    Thanks for sharing, will add this stock to my watchlist soon
    • duseve
      No problem, hope we all earn together :)
  • LeonaClemens
    2022-04-12
    LeonaClemens
    Do you think which price range is the best to buy for UOB Kay Hian?
    • duseveReplyduseve
      Maybe a way of thinking about the price is in terms of the buyback. After 28 April, the buyback will happen for 105% or 120% of the market price. So any price increase before 28 April could still earn
    • duseve
      It is hard to say, it depends on your risk appetite and investment style, among other factors… But at its current price, I believe it is a safe buy. In the short term, the price should keep increasing
  • BenjiFuji
    2022-04-14
    BenjiFuji
    Interesting, thanks
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