Asked on 31 May 2019
DBS, UOB and OCBC’s prices have been free falling since the start of May, with UOB setting a new 52-week low. Thinking of when is a good time to enter, as I still find their current prices too high to buy and hold for dividends?
Hi, I am also looking into buying bank stocks too.
I believe there is a correlation between bank stocks and US futures/US index. I always look at the futures to determine if it is the right time to buy. As US index closed lower so I expect the bank stocks to go down on Monday.
I am looking at buying DBS and UOB. All three banks are good but I pick the ones that have higher dividend yield. DBS is giving $1.20/share for dividend from FY2018 onwards and UOB started giving $1.20 too after including the special dividend.
I am looking at buying them at batches as I would expect that there is more room to drop.
If you're planning to invest long term 5-10 years, it does not matter what current prices are since you would expect them to be higher then.
When US and China strikes a trade deal. The whole world's stock markets have been in decline ever since China back paddelled on the trade terms which led to Trump imposing the latest round of tarrifs with no end in sight of any resolution so far.