To The Moon

My 3rd SG Dividend stock play. 

Doesn't seem like there are any fundamental changes to OCBC, but stock seems to have been hit hard by the recent US Tariff news. Not just OCBC but all other SG stocks.

No one knows if this would be the bottom, but below are a few fundamental and technical analyses:

Fundamental Analysis:

1. Dividend Payouts:

   - OCBC has a history of distributing dividends twice annually, typically in May and August. For the financial year 2024, the bank declared a final ordinary dividend of 41 cents per share and a special dividend of 16 cents per share, totaling 101 cents per share. This reflects a total payout ratio of 60% of net profit, aligning with the bank's commitment to returning value to shareholders.

2. Profit Growth:

   - In FY24, OCBC achieved a record net profit of S$7.59 billion, an 8% increase from the previous year. This growth was driven by robust income across its banking, wealth management, and insurance segments.

3. Return on Equity (ROE):

   - The bank reported an ROE of 13.7% for FY24. While specific projections for FY25 are not detailed in the available sources (for now is expected 13%-14%), the bank's strategic initiatives and capital management plans aim to sustain or improve this metric.

4. Capital Return Plan:

   - OCBC announced a S$2.5 billion capital return plan over two years, comprising special dividends amounting to 10% of net profit for FY24 and FY25, along with share buybacks, demonstrating the bank's strong capital position and commitment to enhancing shareholder value.

Technical Analysis:

1. Recent Price Movement:

   - As of April 8, 2025, OCBC's stock price is S$14.92. This represents a decline influenced by recent tariff news, despite no fundamental changes to the bank's financial health. Such market reactions may present potential buying opportunities for investors considering the bank's solid fundamentals.

2. Support and Resistance Levels:

   - Analyzing historical price data, key support levels may be identified around S$14.50, with resistance near S$15.8 (Daily 200SMA). Monitoring these levels can aid in making informed trading decisions.

3. Moving Averages:

   - The stock is currently trading below its 50-day moving average and 200-day moving average. Investors might look for a breakout above the 200 moving average as a potential bullish signal.

Conclusion:

OCBC's strong financial performance, strategic capital return initiatives, and consistent dividend payouts underscore its robust fundamentals. While recent price movements have been affected by external factors such as tariff news, the bank's core operations remain solid. Investors should consider both the fundamental strengths and technical indicators when evaluating potential investment decisions regarding OCBC stock.