In my last two blog posts, I said that I was giddy with joy.
I expected a higher dividend from UOB and I was not disappointed.
The much higher dividend than expected was a very nice surprise!
With the stellar performance by UOB, the market is now expecting similar performance from DBS and OCBC.
DBS will be announcing results on 3 Aug while OCBC will be announcing results on 4 Aug.
Like I have said in past blog posts, OCBC is able to pay a much higher dividend because of its very high CET1 ratio.
Of course, whether they would pay higher dividends or not is anyone’s guess.
OCBC’s stock price has been relatively strong this year and less volatile compared to UOB and DBS.
However, in recent trading sessions, its stock price has been pushed up pretty aggressively.
Makes me happy since OCBC is my largest investment.
However, I remind myself that if we are focused as investors for income, we would not chase rising prices and we would not fear falling prices.
This is because our focus is on income.
So, I won’t be adding to my investment in OCBC now.
Looking at the chart, I see similar signs of “pump and dump” when comparing to the run up in February last year in 2022.
The MFI shows that OCBC is overbought.
Volume is also declining as price tries to push higher.
Both are red flags.
We could see $13.50 a share retested but I would not be surprised to see a pull back to support currently at $12.40 a share or so.
No point paying $13.50 a share to get a 40c dividend only to see price declining by $1 or so back to immediate support.
If AK can talk to himself, so can you!