atans1

Why I hold Hongkong Bank and UOB shares

In Banks, Financial competency on 27/06/2019 at 4:38 am

OK, OK, I only have an economic interest in UOB via shares in Haw Par. The underlying reasons for investing in Haw Par haven’t changed since 2011: Haw Par: Rediscovered yet again. More recent analysis: https://www.fool.sg/2019/02/28/haw-par-declares-bumper-special-dividend-for-their-full-year-2018-earnings/

As a result of the high cash balance and also to celebrate Haw Par’s 50th anniversary, the group has declared a bumper special dividend of S$0.85 per share in addition to its final dividend of S$0.15 per share. The sum of its final and special dividend amounts to S$1 per share, and if we include its interim dividend of S$0.15 per share, the full-year dividend would be S$1.15 per share. At Haw Par’s last done share price of S$12.39 on 27 February 2019, that represents a trailing dividend yield of 9.3%.

(Bear in mind that the huge dividend yield is due to “special” dividend. It’s normal dividend yield is between 3-4%. FYI, UOB has a 4%+ yield.)

Btw, OCBC and DBS recommending UOB. So do ang moh brokers.

Back to why I own HSBC and Haw Par shares: S’pore and HK are very kind to banks:

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