UBS, Citi on low cost Singapore shares, dividend-paying shares
“Dividend goes to be an important factor for buyers in 2019 … on that, Singapore ranks excessive,” Ken Peng, head of Asia funding technique at Citi Personal Financial institution, instructed reporters on Tuesday.
Peng stated the financial institution likes Singapore lenders — a view shared by funding financial institution Jefferies, which has a “purchase” score for DBS Group Holdings, Oversea-Chinese language Banking Corp and United Abroad Financial institution.
Krishna Guha, fairness analyst at Jefferies, wrote in a be aware final week that the three Singapore banks have the potential to proceed rising their capital and that will end in greater dividend payouts. That is one of many causes that make the lenders a horny funding choice, Guha stated.
“However unsure macro circumstances, Singapore banks, in our view, are sheltered by a mix of cheap valuation, rising payout and various levers to maintain earnings development. Valuations are within the low vary of historic bands and enticing regionally,” he wrote.