DBS Drops Big Dividends and a New Capital Return Plan - Here’s Why I’m Excited

 DBS Announces Record Profits and Capital Return Plan

As someone who keeps a close eye on DBS groups movements, I was pretty hyped when they dropped their latest financial update. On the February 10, 2025, DBS announced a final dividend on $0.60 per share for Q4 2024 (Ex Date - April 7, 2025). This brings the full year payout to $2.22 per share (a 16% jump) as compared to $1.92 the previous year. Not bad at all!

Now let's talk numbers. I first bought DBS back in September 2020 when it was trading at $19.73. Fast forward to today, with the stock sitting at $45, that's a 228% capital gain on my original investment! The $2.22 annual dividend? That's an 11% yield on my initial cost. Definitely not chump change.

Of course, I didn't just stop there. I've been adding to my position over the years, which bumped up my average cost. So my real dividend yield on cost sits at about 7%, and my capital gain stands at 50.13%. Still, those are some solid numbers for a bank stock, and it just shows that patience pays off in long term investing.

But here's the cherry on top. DBS isn't just stopping at dividends. They also announced plans to introduce a new "Capital Return" dividend of $0.15 per share, paid out quarterly. That's like getting an extra bonus on top of an already sweet deal. Not only does it make DBS more attractive to dividend investors, it also signals confidence in their financial strength, which in all honesty, is exactly what we want to see as shareholders.

So what's next? If DBS keep up a full-year dividend of $2.40 ($0.60 quarterly) and a we factor in a reasonable expected 5% return on investment, that would put my target price for DBS at around $48, meaning there is still a 6.6% upside from the today's price.

Bottom line? DBS has been a winner for me. Strong dividends, solid growth and now an extra capital return. Definitely worth keeping an eye on.

Current Holdings:

Bitcoin Plunges to $91K Today: A Closer Look at the Events Behind the Drop

Bitcoin falls 10% intraday

Bitcoin's price took a dive today (03-Feb-2025) to US $91,057, a drop that left the market scrambling. Here's a breakdown of the events that might have contributed to this dramatic plunge.

• New trade tariffs announced by Trump have created uncertainty in global markets prompting investors to shift towards safe-haven assets.

Bloomberg reported a surge in US Dollar and a forecast for falling stock markets amid these trade tensions, DXY data also confirms that the dollar's strength has increased after the confirmation of the tariffs on Friday.

• Canada, China and Mexico's retaliatory tariffs to further escalate trade tensions

In response to the US Tariffs, China and Mexico have indicated that they would retaliate, and Canada announced counter tariffs, targeting approximately C$ 155 billion US goods which is expected to further strain the long standing trade relations between the 2 nations.

This combined effect has led to a significant strengthening of the US dollar relative to other currencies and as a result, impacted Bitcoin in several ways.

• Risk-off sentiment

When geopolitical or trade tensions rise, investors tend to shift their funds into safer assets. This can lead to the selling of what is considered "riskier" investments including the likes of Bitcoin. Although Bitcoin has sometimes been viewed as a hedge, its volatility also means that in times of uncertainty, investor might choose more traditional safe havens such as gold, putting downward pressure on Bitcoin's price.

• Stronger US Dollar

A stronger US dollar makes assets priced in dollars more attractive, As Bitcoin is currently pegged to US stable coins (namely USDC and USDT) which is priced in US dollars, when the dollar surges, the appeal of Bitcoin to global investors fall, as they see more value in holding cash or dollar-denominated assets rather than a volatile crypto asset. This can contribute to lower demand and a further drop in Bitcoin prices.

• Increased Market Volatility 

The trade tensions and subsequent policy reactions contributed to a broader market uncertainty which can further lead to increase volatility across various asset classes. With many investors and algorithms set to trigger sell orders in turbulent markets, Bitcoin could face rapid sell-offs or liquidations as part of this wider market correction.

All these have created a perfect storm for Bitcoin's 10% plunge today. That being said, at the point of writing, crypto has been known to be subject to knee jerk reactions and as such, this decline may represent a temporary adjustment amid broader economic uncertainty. We will need to watch closely to see if Bitcoin can stabilize or will be subject to larger volatility as the situation develops.

Omakase - Kamii Sushi

The Journey Begins

As the prime spark driving our quest, it feels wrong to keep this place hidden. Great food, like great stories belong to everyone and  as such, we would like to share this experience with our dear readers.

Kamii Sushi stands in the beating heart of Johor Bahru near busy malls and key roads. Just a skip away from the causeway, Travelling there is a breeze for locals and visiting Singaporeans alike. 

It is the kind of place you stumble upon on a whim, yet draws you in with it's unpretentious charm. In a city bursting with life, this spot cuts through all the noise, offering a quiet respite where unforgettable sushi and warm service captivates your taste buds and steals your heart.

Omakase Grace

A chef's gentle nod,

We place trust in deft hands.

Courses drift like dreams,

Flavors flow in whispers.

Secrets linger on each tongue,

Moments bloom as we taste.

Omakase Grace

Review

Ambience        🌕🌕🌕🌕🌑        Minimalist and calming interior

Food                🌕🌕🌕🌕🌖        Freshness in every bite

Price                🌕🌕🌕🌕🌑        A bit pricier than the average JB sushi spot, but well worth the price.

The price of the FUYU set is RM 538++ (Approx SGD $190)

We kick start this festival of tastes with a simple appetizer of Kurage (Jellyfish) in lemon sauce, Shirako (Milt) and Shio (Salted) Tomato. This trio offers a bright and refreshing entry into the Omakase experience. The Kurage brings a subtle chew packed with a citrusy zing. The Shirako lends a creamy, oceanic richness, and the Shio Tomato provides a crisp pop of flavor. Together, they cleanse the palate, and awaken the senses, perfect for the more complex dishes to come.

The Hirame (Sashimi) with Vinegar Jelly delivers a clean, delicate follow up. The translucent halibut pairs seamlessly with the subtle tang of the jelly, bringing out the sashimi's natural sweetness. It's gentle flavors serve as a refreshing bridge before diving into the richer dishes ahead.

This diverse sashimi platter showcases a spectrum of textures and flavors. To fully appreciate each bite, we started with the Hotate (Scallop) for its gentle sweetness, moving on to the Akami (Lean Tuna) for a deeper cleaner taste, then explored the Kamasu (Barracuda) which adds a subtle smoky note. Next, we indulge in the Chutoro (Tuna Belly) to experience its melt-in-your-mouth richness, and finally finish with the Tako (Octopus) serving as a satisfying close to this course with a firm bite.

Next comes a soulful twist on a classic Japanese comfort dish. This Nikujaga (Beef and Potato Stew) features the succulent A5 Miyazaki beef braised in  a sweet-savory broth with potatoes and onions. The way the premium beef just melts in your mouth harmonizes beautifully with the gentle sweetness of the vegetables, creating a comforting home style flavor elevated by the luxury of A5 wagyu.

As the fifth course of this meal, this dish naturally escalates the indulgence introduced by the previous plates. After the comforting richness of the Nikujaga, the Foie gras-wagyu combination raised the bar  on luxurious flavor, while the Uni (Sea Urchin) and Caviar added a briny, accent that kept the palate engaged. this layering of bold, creamy and subtly salty elements continued the omakase progression creating a harmonious transition towards the most decadent offering of the meal.

After the intense decadence of Foie gras and wagyu, the sixth course provides a gentle yet aromatic transition. The aburi kinmedai (Golden Eye Snapper) offered a more delicate, lightly smoky sweetness while the Truffle Oil bubbles introduced an earthy whisper of luxury that doesn't overpower. This balancing act refreshed the palate while maintaining the enriched tone of the meal.

A refreshing counterbalance to the truffle-infused richness of the sixth course. The lightly pickled Shime Saba (Cured Mackeral) and the White Konbu (Seaweed) provides both a tangy punch with a subtle salty layer. This combination cut through the lingering richness, resetting the palate and ensuring each bite remained lively and distinct. 

This course reintroduced the richness of the ocean after the palate cleansing from the previous course. The creamy Uni seated atop warm, vinegared rice and wrapped in crisp seaweed offered a burst of sweetness that enveloped our taste buds. It was a return to indulgence, gently guiding us back towards the richer territory without losing the lightness established by the previous course. 

The lightly seared Otoro (Tuna Belly) once again invited us to partake of the bounty of the ocean, enhanced by the gentle kiss of garlic. The fresh nama wasabi (horseradish) used set this dish apart from the standard wasabi paste found in other establishments. Ground directly from the wasabi root, it provided a nuanced heat that complements the fatty tuna without overpowering it.

This dish pairs the natural sweetness of Botan Ebi (Sweet Shrimp) with the velvety richness of foie gras. The finishing touch is a secret house sauce, infused with the accumulated umami of other ingredients that binds everything together in one luscious bite.

Following the decadence of the Botan Ebi and Foie gras, this gently simmered broth offers a soothing interlude. The double boilling technique concentrates the flavors without overpowering the delicate otoro, which softly enriches the soup with its subtle fattiness. Meanwhile, the mushrooms induse a light earthiness, rounding out a light yet deeply comforting course.

And finally, a refreshing finish to the omakase. the Japanese strawberry, apple and melon delivered a natural sweetness and crisp juiciness, while the custard mochi added a soft chew. This final bite offered a playful closure which left us with a lingering sense of satisfaction.

Overall, this omakase was a precisely orchestrated progression from light palate awakening bites to indulgent, richly layered flavors. It was then elevated in luxury with the inclusion ingredients such as Wagyu, Uni and Caviar, balanced by palate resetting courses and a soothing double boiled soup. Finally, ,all this culminated in a delicate dessert, a playful conclusion that cleanses and delights the palate.

I hope this flavorful journey has ignited your passion to pursue your own path towards Omakase Freedom just as it has for us. Each dish reminds us that with the right balance of indulgence and discipline, life's finest pleasures can become a recurring treat!

Summary Jan 2025 (YMAX, MSTY, CONY)

Introduction

Welcome to a new segment on my blog, where I will be shining a spotlight on YieldMax ETFs. These funds combine traditional equity exposure with options-based strategies, aiming to deliver income opportunities to investors in search of steady yields.

It is my hope that this section will provide deeper insight and performance updates which will help you to decide if YieldMax ETFs might be a valuable addition to your portfolio.

My first transaction involved a small purchase in CONY (Coin Option Income ETF) on 23rd Oct 2024 which was followed closely by a 2nd purchase a week later.

That month saw a dividend of $2.02 a share which after a 30% witholding tax was still a whooping 9.93% dividend yield on cost.

Seeing the potential of significantly increasing my monthly cashflow as well as considering the first mover advantage of coinbase / bitcoin, I decided to look further into 3 funds (CONY, MSTY and YMAX) to see if I could further increase my yield.

Portfolio Summary (As of 31 Jan 2025)

Since that day, I have been slowly purchasing shares in the counters below and have accrued the following amounts at the following costs.

Portfolio Value

We can see from above that the current portfolio is still heavily skewed towards CONY. Based on the current expectations that Bitcoin will continue to climb in the year of 2025, I have decided to slowly balance my portfolio towards a 50% MSTY, 30% CONY and 20% YMAX ratio.

Transactions made in the month of Jan 2025

We can see here that several purchases of MSTY were made in the month of January towards that end, which brings my total MSTY holdings to 110 shares.

  

Portfolio Performance

As shown above, for the month of January, the total portfolio cost has since increased to approximately USD $11,000 and has yielded a dividend of  approximately USD $683 (or 6.16% of the portfolio cost). However, due to a depreciation in prices, only CONY is shown to still be positive.

The reasoning for such a depreciation in prices could be as follows:

• Federal Reserves Monetary Policy

Interest Rate Decisions in late 2024, the federal Reserve implemented a series of interest rate cuts (a total of one percentage point) to stimulate economic activity. However, in January 2025, the Fed opted to pause further rate reductions, citing persistent inflation concerns and economic uncertainties. This pause signaled a cautious approach, which might have affected investor sentiment and led to market volatility.

• Inflationary Pressure
  

Despite previous rate cuts, inflation still remained elevated at the end of 2024. This combination of strong economic growth and a tight labor market contributed to sustained price increases, which resulted in eroding purchasing power and heightened concerns about future economic stability.

• Policy Uncertainty

The re-election of Donald Trump as POTUS introduced significant policy shifts, including rapid deregulation and proposed changes to federal spending. These actions created further uncertainty into an already shaken market, as investors grappled with the potential impacts on various sectors and the broader economy.

• Tech Sector Turbulence

In January 2025, the emergence of DeepSeek, a competitor to OpenAI's ChatGPT, led to a sharp decline in tech stocks. Notably Nvidia experienced a significant loss in market value. This event contributed to the broader market volatility, impacting ETFs with tech sector exposure as questions on the efficiency of current AI models as well as the future demand for AI software.

Dividend Performance 

The above shows the dividends collected as 2025 and how it was distributed on a monthly basis. In spite of only starting last October, we are already approaching our first target of US $500 a month for the year of 2025 (US $405.68 in the month of January alone). 

We notice that CONY has been trending downwards over the past 3 months due to reasons highlighted above. However, we do foresee it going back up with the current recovery trend of the underlying stock COIN (Coinbase Global Inc).

As this was the first month receiving dividends from MSTY, we are unable to confidently predict a trend. That being said, we noted that the underlying stock MSTR (Microstrategy Inc) has been stuck in consolidation parallel to Bitcoin and this is unlikely to change.

Finally for YMAX, as this counter pays out dividends on a weekly basis, we saw a peak of US $0.245 per share on 30 Dec 2024, likely due to the additional days due to the Christmas period. If we look on a monthly basis, we also notice that there has been a slight increase in the monthly accrued dividends from US $0.744 to US $0.751. As YMAX covers a range of Option Income Strategy Funds such as BABA, NFLIX, AAPL, META and PLTR. It still remains to be seen how the impact of DeepSeek as mentioned earlier will have an impact on the dividend payouts.

Moving forward, I will continue to add to this portfolio of ETFs while also monitoring the rate of returns on this portfolio as we move towards the end goal of being able to comfortably afford an Omakase meal on a monthly basis.

If you have any queries, feel free to reach me and I will try to respond as soon as possible.

As mentioned in an earlier post, I still believe there is significant upside to cryptocurrencies as such, I am looking forward to holding on to these shares until at least end 2025 to 1Q 2026.

Option Income Strategy ETFs: A Quick Guide for You

What is an Option Income Strategy ETF?

An Option Income Strategy ETF is a special type of exchange-traded fund that generates income by using options. Instead of just holding stocks and hoping they go up, these ETFs sell options contracts to bring in extra cash, which they then pay out to investors as dividends (often monthly).