DBS Bank (D05), Part 2 (To Buy or Wait)

 

I'm penning this article to delve into the challenge of adding a stock to your portfolio when it's continuously on the rise. As of now, DBS has recently experienced its X-Dividend Date and X-Bonus Date. There's an anticipation in the air that the price might take a dip, aligning with my strategy of boosting the percentage of DBS stock in my portfolio. Currently sitting at around 10%, my aim is to hit about 30%, as discussed before.

On the X-Bonus Date, the stock did indeed witness a slight decline in price. However, within just a few hours of the market opening, it began its ascent once again, maintaining the upward trajectory for the next couple of days. Presently, it stands at approximately $34.42. Considering the current dividend of 54 cents per quarter, this price still offers a dividend yield of 6.27%, which is undeniably appealing.

 The pivotal question arises: do I succumb to FOMO (Fear Of Missing Out) and aggressively accumulate now to meet my 30% target, or do I exercise patience and wait? At present, I find myself in a state of indecision. If I adopt a long-term perspective, particularly for a robust dividend-based portfolio (emphasizing value investing), then fluctuations in price shouldn't perturb me; rather, I should concentrate on achieving a satisfactory dividend yield level.

 Furthermore, there's a chorus of positive reviews from analysts, with one even setting a target price of $35.45 post the 10 to 1 bonus issuance. Thus, the lingering question persists: should I begin loading up, content with a dividend yield of 6.27%, and trust that the stock price will continue its upward trajectory as dividends increase in the forthcoming years? Only time holds the answer.

Note: 5May2024 - Surplus cash can be returned through Ordinary Dividend and Special Dividend. New target price from one analyst is at $40+.

This is my investing journey.