When Will You Sell A Stock

Is UOB a Good Stock to Buy?

UOB Singapore

Is UOB a Good Stock to Buy? On Friday, 5th April 2024, I took opportunity of the market volatility to buy more of UOB shares. UOB (SGX:U11) is one of the three local banks in Singapore. The other two local banks are OCBC (SGX:O39) and DBS (SGX:D05). Currently, I have both UOB and OCBC in my stock portfolio.

While watching the morning news on Friday, the Fed shared that they are not in the rush to cut interest rates. “It is much too soon to think about cutting interest rates,” Lorie Logan, president of the Federal Reserve Bank of Dallas, said in a speech.

As usual, the stock market reacted to the news and I took opportunity to buy more of UOB to my stock portfolio. If you have been following my blog, you will know that I am a dividend investor. As such, my stock portfolio is made up of dividend paying companies and REITs.

Banks have been good dividend paying stocks. Now, let us take a look at UOB past dividend payout.

UOB Historical Dividend Payout

I extracted the chart from UOB’s 2023 annual report. As you can see below, UOB has maintaining their payout ratio between 49% to 50%. UOB has paid out a full year dividend of $1.70 per share in 2023.

As you can see from the table below, UOB has been consistently paying out dividends every year. In 2029, a special dividend of 20 cents was even announced.

Year Ordinary Dividend (Cents) Special Dividend (Cents)
2023 170
2022 135
2021 120
2020 78
2019 110 20

UOB Current Dividend Yield

What is UOB’s current dividend yield? Based on UOB share price of S$29.40 and FY23 full year dividend payout of 170 cents, this translates to a current dividend yield of 5.78%.

This is very much attractive and comparable to what REITs are offering. UOB share price has been trading between the 52-week range of 26.82 SGD (lowest) to 30.27 SGD (highest).

Different investors will have different opinions on whether UOB is a good buy. If you ask me “Is UOB a Good Stock to Buy?” As a dividend investor, I will definitely say “Yes!” given the attractive current dividend yield of 5.78%.

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