DBSDY - DBS Group: A Muted Near-Term Outlook But Shares Remain Attractive
2024-03-05 18:05:12 ET
Summary
- Shares of DBS Group have been relatively flat since I first covered them in September, albeit that performance is broadly in line with Singaporean equities and certain Asian bank peers.
- As expected, earnings started to drop off a little in the latter half of 2023, though all-in-all Q4 performance was still solid.
- While the outlook for earnings is probably flat at best, management can still deliver robust dividend growth thanks to a strong balance sheet and modest payout ratio.
- With implied guidance pointing to around 8-9% annualized dividend growth, these shares remain attractive given the current high base yield.
Shares of Singaporean bank DBS Group ( OTCPK:DBSDY )( OTCPK:DBSDF ) have been relatively quiet since my opening piece last September, returning just 3% in that time even as U.S. equities have rallied quite strongly. While this looks fairly tepid, the stock's performance is not out of line with more apt benchmarks, as the past few months has been a fairly lackluster spell for both the region's equities and specific Asian bank peers like United Overseas ( UOVEY )( UOVEF ) and HSBC ( HSBC )....
DBS Group: A Muted Near-Term Outlook, But Shares Remain Attractive