The shares of DBS (SGX:D05) made quite a splash today, shooting up by over $1 or 2% following their impressive announcements. The bank reported Q4 2024 earnings of $2.52 billion and hit a record high full-year profit of $11.29 billion. They’ve also declared a quarterly dividend of $0.60 per share, along with a $0.15 quarterly capital return for the next three years. Caught in the excitement and not wanting to miss out, I decided to buy a few more DBS shares using some idle SRS funds. That’s how things unfolded!
In a perfect world, I’d love to buy DBS shares when they’re priced under $40, but we all know how tricky timing the market can be. Even at the current $46, DBS offers a forward yield exceeding 6.5%, assuming an annual dividend of $3. This includes four quarters of $0.60 dividends and a $0.15 capital return. With a payout ratio of less than 60%, it’s a compelling option when compared to S-Reits, which need to distribute at least 90% of their income to achieve yields over 5%. Lately, DBS has been…
