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SuperNoobPaPa
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If DBS is able to maintain quarterly dividend of $0.54 or $2.16 a year:
Current yield is $2.16 / 38 = 5.70% pa.
If you think the reasonable yield for stock like DBS is 5.00% pa, then we are talking about DBS stock price reaching $43 or +13.2% upside still.
Why the price can hit $43? That’s because everyone feels at 5.70% yield, it is still good. Demand for the stocks will drive the share price up till the yield compress to 5.00%. Then the price of DBS = $43. If it is 4.5% pa yield, then we are talking DBS share price hitting $48.
So my expected target price range is between $43 to $48 per share.
The risk? DBS decides to reduce its dividend amount. So we have to go back to history and see when DBS will cut/ reduce its dividend after new dividend revision.
SuperNoobPaPa
SuperNoobPaPa
:
I repost this comment which was written on July when the price was $38 prior to $0.54 dividend on August.
I truly believe $40 is not a big hurdle. If anything, the big hurdle is to reach $45 per share.
At $40, the dividend yield is still very attractive and no reason to take profit for long term holder. This is assuming the DPS remains at $0.54 every quarter which I don’t think will be the case.
SuperNoobPaPa : If DBS is able to maintain quarterly dividend of $0.54 or $2.16 a year:
Current yield is $2.16 / 38 = 5.70% pa.
If you think the reasonable yield for stock like DBS is 5.00% pa, then we are talking about DBS stock price reaching $43 or +13.2% upside still.
Why the price can hit $43? That’s because everyone feels at 5.70% yield, it is still good. Demand for the stocks will drive the share price up till the yield compress to 5.00%. Then the price of DBS = $43. If it is 4.5% pa yield, then we are talking DBS share price hitting $48.
So my expected target price range is between $43 to $48 per share.
The risk? DBS decides to reduce its dividend amount. So we have to go back to history and see when DBS will cut/ reduce its dividend after new dividend revision.
Good luck!
SuperNoobPaPa SuperNoobPaPa : I repost this comment which was written on July when the price was $38 prior to $0.54 dividend on August.
I truly believe $40 is not a big hurdle. If anything, the big hurdle is to reach $45 per share.
At $40, the dividend yield is still very attractive and no reason to take profit for long term holder. This is assuming the DPS remains at $0.54 every quarter which I don’t think will be the case.