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.
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