$UOB-KAY HIAN HOLDINGS LIMITED(U10.SI)$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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