BTS
2025-10-18

Holding banks for stable dividends, such as DBS (D05), is a medium-term strategy suitable for income focused portfolios despite margin pressure risks

Rotating from banks into growth sectors is a tactical move that prioritizes capital gains over income, aiming to benefit from rate cuts but with higher volatility。。。

Waiting on sidelines avoids near-term downside and aims for re-entry at lower valuations, trading short-term yield for long-term upside

A balanced strategy that keeps a core dividend position while adjusting tactically offers both steady income and flexibility to respond to market shifts

Tag :@Huat99  @Snowwhite  

SG Banks Slips! What’s Your Time Span for Holding Banks?

@Tiger_SG：
Singapore’s three banking giants — $DBS(D05.SI)$ , $OCBC Bank(O39.SI)$ , and $UOB(U11.SI)$ — have all retreated recently, as investors brace for an expected Fed rate cut cycle. The question now is: where’s the focus when growth slows but dividends stay strong? DBS: The Dividend Anchor DBS just delivered another solid quarter — total revenue up 6% YoY to S$5.9B and net profit at S$2.9B, slightly lower due to global minimum tax adjustments. Still, the bank rewarded shareholders with a S$0.75 per-share dividend, up nearly 39% YoY, including a special S$0.15 capital return.At current levels (~S$54.8), that’s a ~5.5% yield — one of the highest in the region. Why Dividends Matter Now As rates begin to normalize, net interest margins (NIMs) may soften, but banks like DBS remain supported by: Record fee income from wealth management and cards Strong balance sheets and stable credit quality Continued buybacks and payout growth signaling confidence With yield curves flattening, investors are shifting from rate-driven earnings toward cash flow visibility and sustainable dividends. Other dividend plays are attracting renewed attention: $Singtel(Z74.SI)$ offers ~7% yield, boosted by a value-unlock payout. $ST Engineering(S63.SI)$ and $SATS(S58.SI)$ show steady recovery but lower yields. 💬 Your Turn Rate cuts are coming — but dividends remain strong. So, investors, what’s your move? 1. Prefer holding for income (dividend play)? 2. Rotating into growth or cyclical? 3. Or just waiting for a better entry after the pullback?
SG Banks Slips! What’s Your Time Span for Holding Banks?

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Comment（6）

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  • Merle Ted
    ·2025-10-20
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    Prices is too costly tjo buy.Has the group considered to split the share,so more people can participate, good for the share's price too

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    • BTS: 
      [smile]
      2025-10-21
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  • Valerie Archibald
    ·2025-10-20
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    DBS used to increase their dividends once a year….now they make two increases a year or every two quarters. Amazing !

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      [smile]
      2025-10-21
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  • twixzy
    ·2025-10-19
    TOP
    Great insights, love your balanced approach! [Heart]
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    • BTS: 
      [smile]
      2025-10-21
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