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DBS, UOB or OCBC – Who has a Better Dividend Share for 2019? Round 1

In Singapore, the three major listed banks are DBS Group Holdings Ltd (SGX: D05), Oversea-Chinese Banking Corporation Limited (SGX: O39) and United Overseas Bank Ltd (SGX: U11). After peaking between end-April and early-May 2018, these banks have seen their stocks price declining for the next few months, down by more than 20% from their respective peaks.

The decline in the Singapore banks’ share prices might draw some interest from investors. One of the groups of investors would the dividend investors. In particular, income investors might want to know: Which bank is the best dividend stock to own?

There is no easy answer to the above question. After all, we do not know what will happen in the future. Still, I would like put the trio side-by-side for a direct comparison to find out the best.

In this article, I will compare the dividend track record of the banks for the last 10 years. This will give us some hint as to what to expect in the future.

The showdown

Let’s begin with DBS. In the last decade, DBS has grown its dividend per share from S$0.65 in 2008 to S$1.43 in 2017 (including a special dividend of S$0.50 per share). In other words, dividend was up by 120% or 43% (excluding special dividend) during the period.

Next, we have OCBC. In the last 10 years, OCBC has grown its dividend per share from S$0.28 in 2008 to S$0.37 in 2017. In other words, dividend was up by 32% during the period.

Lastly, we will look at UOB’s performance. During the same period, UOB has grown its dividend per share from S$0.60 in 2008 to S$1.00 in 2017 (including the special dividend of S$0.20 per share). In other words, dividend was up by or 67% or 33% (excluding special dividend) during the time frame.

The Foolish conclusion

In sum, all three banks did well in the last decade in growing their dividend payment. Among the three, however, DBS did the best in increasing its dividend payment over the ten years.

Stay tuned for more comparison of the three banks’ dividends.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. Motley Fool has recommendations for DBS Group Holdings Ltd, Oversea-Chinese Banking Corporation Limited and United Overseas Bank Ltd.