DBS Bank (D05), Part 1

 

Peaceful and Calm

I would like to review the DBS stock in this article. DBS has been a good stock to hold as it gives quarterly dividends. At the time of this writing, the stock price is about $36+, which, in my opinion, is considered expensive. Even at this price, the dividend yield is about 6%, calculated based on 54 cents per quarter.

In fact, the CEO has recently mentioned that dividends will only increase and, to my understanding, has provided these guidelines:

2024 - dividend 54c per quarter

2025 – dividend 60c per quarter

2026 – dividend 66c per quarter

That is a pretty impressive forecast. I read an article before that discussed the best stocks to hold if a Thanos-like event to occur (from the movie Avengers), and DBS was mentioned as one of them.

I have been buying and selling DBS for a while now, I believe since 2020, but I realized that each time I sell, the price keeps going up and usually forces me to buy again at a higher price. So, it looks like I have not really mastered the art of maximising profits. Here is my journaling for DBS.

--- start of journal ---

Stock name: DBS (D05)

Price bought: average $33.7+ (averaging for the past 3+ years)

Date of purchase: 2020 – 2024

Reason for buying: Quarterly dividends initially at about 45c, yield ~6%. Stable company. Dividend has been increasing yearly. In 2024, it is 54c per quarter.

Evaluations: At the time of this writing, evaluations vary from $34 to $43.

Risks Identified: The stock has run up quite significantly in the year 2024, due to increasing dividends and declaration of bonus stocks , 1 share for every 10 shares. Would the price go down in the near future?

--- end of journal ---

Will DBS maintain the current price, or will there be a big dip after the issuance of the bonus stocks? Or will it keep trending upwards?

Overall DBS is a great stock to hold and I hope to increase DBS in my portfolio significantly.  Currently it is about 10% of my portfolio.  The challenge is to find the right price and to increase this to a more substantial percentage of my portfolio.  Maybe a goal of 30% will be a good target.  I would think if a stock is a champion and considered the best, why go for the second best.

I would also like to add the other 2 bank stocks (OCBC and UOB) significantly in the future. Currently UOB is around 15% and OCBC is around 3% of my portfolio. My preference is leaning more towards DBS due to its quarterly dividend and clear forecast given on the future dividends.  

This is my investing journey.