As many of you will know, DBS bank went ex bonus shares on Monday, 22 April.
Interestingly, DBS shares have done very well since then.
Here is the price chart for DBS (after adjusting for bonus shares).
You can see the jump this week – hitting new all time highs at $34.79 (this would have translated into $38.3 pre-bonus shares).
At this price, DBS trades at a very pricey 1.65x book value.
And yet dividend yield remains very attractive at 6.2% – higher than most REITs.
So… DBS share price keeps going up, and it pays a higher dividend yield than most REITs.
Is it time to load up on more DBS shares, or is it time to play a reversal?
DBS Bank shares hit all time high after Bonus Shares – outperforming OCBC and UOB Bank
Here’s the daily chart of DBS Bank for reference.
Blue is OCBC and Orange is UOB.
You can also see how DBS has outperformed both OCBC and UOB significantly since mid 2023:
And this week in particular – after going ex bonus shares, DBS broke out of the recent trading range, hitting new all time highs:
DBS Bank pays a 6.2% Dividend Yield even after the rally – higher than most REITs
DBS Bank has committed to a $2.16 dividend per share.
With the latest share price of $34.79, that works out to a dividend yield of 6.2% - which is actually higher than most REITs.
Dividend payout ratio is only around 50%, so the dividend yield looks sustainable as long as there are no big interest rate cuts / recession (this is a big if I know).
So you can really see why investors are in love with