DBS is the fourth largest bank in Singapore and one of the two major banks in Southeast Asia. As one of the most successful banks in Singapore, DBS has a history of dividend payout that would have been more than good for its shareholders.
With the rising popularity of cryptocurrency and increased government regulations on cryptocurrency exchanges, DBS has been forced to shift its focus from traditional finance and blockchain technologies. Their innovative and forward-thinking approach makes us believe that their dividend prices will continue to grow — and historical data serves as the foundation of this claim.
DBS Overview
DBS is one of the most valuable banks in the region. It has a market capitalization of $77 billion, and it is an international bank that provides services for businesses across more than 50 countries. DBS has a significant presence in Asian countries, including Malaysia, Thailand, Indonesia, the Philippines, China, Hong Kong, and Vietnam.
DBS Bank Share Price
We believe that alongside UOB and OCBC, DBS is one of the strongest banks that COVID19 did not spare because of economic contractions and reduced national and international activity. Its share prices this 2021 are a significant indicator of the steep decline it faced in a single year despite the increasing highs it has reached from 2017-2019.
Minor indicators of its improving prices are its one-day return-to-form as 13 August 2021’s dividend price of S $0.33 matched its 11 August 2017’s final dividend prices.
2021 | Yield | Total | Amount | Date | Pay Date |
1.69% | S $0.51 | S $0.33 | 2021-08-13 | 2021-08-26 | |
– | 2021-05-10 | 2021-06-25 | |||
S $0.18 | 2021-04-07 | 2021-05-24 |
Against other banks in 2020, DBS performed much better than UOB and OCBC in terms of market prices. However, we believe that it could have done better with a higher dividend yield versus UOB, which gave the latter much more precedence and value among investors.
Still, it doesn’t mean that DBS fell short of any expectations because we greatly believe that its total dividend yield per share and last traded price are strong indicators of an upward trend.
How DBS Performed against other Blue Chip Banks
Total Dividend Yield Per Share (2020 Figures) | Last Traded Price (2 Aug 2021) | Dividend Yield (Using 2 Aug 2021 trading prices) | |
DBS | S $0.87 per share | S $30.36 | 2.87% |
OCBC | S $0.318 per share | S $12.30 | 2.59% |
UOB | S $0.78 per share | S $26.13 | 2.99% |
How Much Dividends Can DBS Possibly Issue This Year?
Dividend Per Share Price | Pay Date | Scrip Price (per share) |
S $0.18 (Final dividend for 2020) | 24 May 2021 | S $28.77 |
S $0.18 (Q3 2020 interim dividend) | 29 Dec 2020 | S $23.93 |
S $0.18 (Q2 2020 interim dividend) | 5 Oct 2020 | S $21.04 |
S $0.33 (Q1 2020 interim dividend) | 26 May 2020 | N/A |
Investing in DBS stocks is likely to bring in a lot of returns in the future. Historical data shows that its dividends per share have increased over time, which suggests that 2021 marks the start of new growth opportunities. This follows the Monetary Authority of Singapore’s lifting of restrictions that capped dividend payouts from local banks and finance companies at 60 percent of the previous year’s dividend amid the pandemic.
According to the May 2021 financial report, DBS remains an attractive investment for long-term investors. The company’s dividend rose significantly from the previous quarter, with millions returned to the shareholders.
DBS Dividends: The Risks Involved in 5-Year Price Actions
DBS is an excellent bank that holding its blue-chip asset for five years or more will seem worthwhile. However, COVID19 and other economic threats can still influence its price stability even after five years. From this chart, it’s easy to see that DBS’ dividends and stock value will continue to rise, but we highly advise investors to avoid too much complacency and invest with care and due diligence.
Our Long-Term Assessment of DBS (SGX: D05)
DBS Group Holdings is a bank that Singaporeans and clients in other countries trust completely. In addition, DBS continues to welcome innovation on financial products to prevent itself from becoming technically and financially stagnant. Therefore, we believe that DBS will continue to increase in value despite the threat of COVID19 and other external factors.
Our Verdict
Based on our analysis above, if you have cash, we highly recommend that you purchase DBS stocks today to receive possibly higher dividends shortly if it maintains its current performance. Even investors borrowing money to invest in DBS will likely get their returns quickly and even more shortly.
Good to Know
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More About Price Action Risks
Traders like to trade on every market movement, including price action, because when the markets are moving in the direction, it might be a good time to enter. Otherwise, it’s a good time to exit when they are moving against you.
However, price action trading can also be risky as traders might not anticipate how changes in the market will affect their investments. Even with 5- year price actions, your expectations might be too high, or you might end up too complacent with your trades.
Therefore, 5-year price action transactions aren’t advisable for novice traders as they may lose too much money on small trades that do not result in enough profits over time, even with DBS and other blue-chip banks.
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Are Banks Always Great Investments?
Banks are a relatively stable investment option that provides a long-term return. They have been one of the most reliable ways to save their money and earn a profit in the long run. Banks offer low-risk investments that investors can easily pass down to future generations, including their dividends.
Financial institutions. are the most stable investment you can make for the future. Short-term investments like stocks and bonds have higher volatility that is impossible to predict and provide better returns, which banks lack. As a result, we believe banks won’t do much for short-term investors except as an asset that pays dividends and stores value for short-term investment gains.
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What’s the Scrip Dividend Scheme?
This scheme is a system of economic incentives that can be used in several different ways. One way to use the scheme is to reward the workforce for labor sharing using scrip dividends. The other way would be to reward consumers for supporting local businesses. Another is to reward investors in the same way.
Our Takeaways
- DBS is an excellent bank that had an interrupted rise in value because of COVID19
- The bank’s total dividend yield and the latest trading price is the highest among all three banks
- We highly recommend investing in DBS stocks to receive possibly high dividends today
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