SG Stocks To Watch [21-25 Aug] : SBS Transit (S61) - SMA, RSI & SAR

This has make SBS Transit dividend yield of 4.3% which is above the industry average. We should not be too concerned about impressive dividend yields.

We should look if SBS Transit is able to continue paying such high dividend and the most important thing to look out for is how much of the earnings have been reinvested for better growth.

The next thing is the EPS, if SBS Transit continue the current growth trend, we could be seeing their EPS increasing by 2.4% over the next year.

Similarly if the dividend payout remains above industry average, we could see a close to a 56% payout ratio by next year. This would mean SBS Transit is pretty well into being sustainable.

In this article I will be using technical analysis to share when I would think SBS Transit can be traded this week (21-25 Aug).

As we can see SBS Transit dividend payout being above industry average, with them reinvesting their earnings, I would think it will go into a bull trend pretty soon.

Now it is currently just below SMA200, over the next few days, I would expect it to go above SMA50 and SMA200.

I will be closely monitoring how SBS Transit would be trading on 21 Aug (Monday).

RSI momentum is good and it should be moving towards the oversold region.

I do expect some buying before its dividends payout. And also investors should have confidence for Q3 earnings.

Bullish reversal just appear, more upside should be seen especially after its dividends announcement.

With an expected more sustainable growth, I believe the bullish upside should continue.

From the technical analysis, I would expect SBS transit to have a nice upside move this week. This can be fueled by their dividend announcement.

Additional sustainable growth expectation should also help to have investors going to load SBS Transit.

I would be looking to enter at around $2.50 when market open on 21 Aug 2023.

Appreciate if you could share your thoughts in the comment section whether you think SBS Transit (S61) is worth investing or trading?

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.