The Weekly Nibble: Banking on DBS Group Holdings Ltd

Here are some of the more interesting articles that have appeared on the Motley Fool Singapore’s website this week.

5 Worrisome Trends That Investors Should Know About M1 Ltd’s Business

M1 Ltd (SGX: B2F) is one of the three major telcos operating in Singapore. It was once a darling of the stock market with a peak share price of close to S$4 in early-2015. However, its shares have since fallen to S$1.79, as of Friday’s open. What could be some of the reasons behind the precipitous decline? Lawrence Nga investigates in his article above.

How to Analyse a REIT’s Debt Profile

Most real estate investment trusts (REITs) offer investors a regular stream of income with their quarterly distributions. Due to this feature, REITs are popular among the investing public.

However, REITs also take on lots of debt to fund their operations and grow their portfolio. This is because most of the income they get is distributed to unitholders, since REITs are obliged to distribute at least 90% of their taxable income to enjoy tax benefits.

In his article, Jeremy Chia looks at some of the ways to analyse the debt profile of a REIT and determine if it is conservatively financed. He also uses First Real Estate Investment Trust (SGX: AW9U) as an example to show how one of the criteria can be calculated.

On DBS Group Holdings

DBS Group Holdings Ltd (SGX: D05) is a leading financial services group in Asia with many accolades. It has been named the Safest Bank in Asia by Global Finance for nine straight years from 2009 to 2017. It is also recognised as the World’s Best Digital Bank by Euromoney.

In 2017, DBS saw its total income rise 4% year-on-year to a high of S$11.92 billion while net profit soared 4% to a record S$4.39 billion. The bank also upped its 2017 ordinary dividend to S$0.93 per share, an increase from S$0.60 per share in 2016. If the 2017 special dividend of S$0.50 per share is added to the mix, the overall dividend hike would be more.

Jeremy, in three articles published over the course of this week, looks at the positive trends of the bank, the sustainability of its dividends, and how digitalisation has helped its business. Check out his articles below:

a) 3 Positive Trends For DBS Group Holdings Ltd’s Business – head here

b) How Sustainable is DBS Group Holdings Ltd’s 3.3% Dividend Yield? – head here

c) How Has Digitalisation Improved DBS Group Holdings Ltd’s Business? – head here

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of DBS Group Holdings Ltd and units of First Real Estate Investment Trust. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.