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$DBS (D05.SG)$ Arrive by Friday to 39![Grin]

$DBS (D05.SG)$ Arrive by Friday to 39!
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  • 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.

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