MENU

These 3 Blue-Chip Stocks Have Repurchased Their Shares This Week

Warren Buffett is someone who actively encourages companies to buy back their shares if the conditions are right.

He once said that when the shares of outstanding companies with strong financial positions are selling below their intrinsic value, no other action can benefit shareholders as share repurchases can.

On that note, let’s look at three Straits Times Index (SGX: ^STI) components picked at random that have repurchased their shares thus far during the week, as of market open today.

Oversea-Chinese Banking Corp Limited (SGX: O39)

Oversea-Chinese Banking Corporation, or OCBC for short, is the longest established local bank and is the second largest financial services group in Southeast Asia by assets.

On 25 and 26 June 2018, OCBC bought back 200,000 shares ranging from S$11.55 to S$11.63 apiece, translating to a total cost of around S$2.3 million.

OCBC ended Thursday at S$11.61 per share. This gives a price-to-book ratio of 1.3 and a dividend yield of 3.2%.

Keppel Corporation Limited (SGX: BN4)

Keppel Corp has four business divisions, namely, Offshore & Marine (O&M), Property, Infrastructure and Investments. The O&M division is one of the world’s largest oil rig builders.

On 25, 26, 27 and 28 June, the conglomerate repurchased 1,050,000 shares ranging from S$7.08 to S$7.19 per share, translating to a cost of around S$7.5 million.

Keppel Corp shares last changed hands at S$7.08 apiece on Thursday. This gives a price-to-earnings ratio of 43 and a dividend yield of 3.1%.

Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6)

Yangzijiang is the largest China-based company in the Singapore stock market. It is also a leading shipbuilder in China in terms of manufacturing capability and capacity.

On 27 and 28 June, the firm bought back 4,000,000 shares at a price range of between S$0.90 and S$0.92 per share. It spent around S$3.6 million for the repurchase.

Shares in Yangzijiang closed at S$0.90 on Thursday. The firm was selling at six times trailing earnings and had a dividend yield of 5%.

Meanwhile, are you worried about the overall state of the market? Do you know the 1 thing you should never do in the stock market? The Motley Fool Singapore's new e-book lays out a plan to handle market crashes, details the greatest advantage you have as an investor, and looks at decades worth of market data to bring you the smartest insights on investing. You can download the full e-book FREE of charge--Simply click here now to claim your copy

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.