In terms of dividends, which blue-chip bank should I invest in? DBS, UOB or OCBC? - Seedly
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Anonymous

Asked 3w ago

In terms of dividends, which blue-chip bank should I invest in? DBS, UOB or OCBC?

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Shaun Wq Lim
Level 7. Grand Master
Answered 3w ago

You can search for the dividend history for each bank on their investor relations page.

For the past few years, DBS and UOB have been paying $1+/share in dividends in their financial year. OCBC usually about $0.60/share.

Do note that with the current economic climate, that may change from this year.

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Shaun Wq Lim

3w ago

The difference between the last done prices is about 10+ cents. Itā€™s about the same, based on past dividends between the two. Another difference is that DBS is paying dividends quarterly and UOB is paying semi-annually. Depends on how you prefer to receive your dividends. Again no one knows if they will continue to pay the same level of dividends they have done before. So got to factor that in mind.
Question Poster

3w ago

Thank you so muchā˜ŗļøI fully understand now

Hi anon,

The banks are fundamentally the same in the way they run their business, but there are minor differences which you should analyze to guide you in deciding which bank you wish to invest in. I won't recommend spreading your capital over all 3 banks unless it is large.

You will want to look at factors such as:

  • Net interest income as a % of income

  • Net profit margin

  • Dividend payout Ratio

  • Capital Adequacy Ratio

  • Non performing loans ratio

  • Relative Valuation

  • Book value growth

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