Which Is The Better Dividend Stock: DBS Group Or UOB?
One of the most stable industries in Singapore is our banking industry.
In particular, our local banks have demonstrated an enviable track record of sustaining profitability over a long period of time. As such, these banks have become popular among conservative investors who want to generate stable returns over the long term, both in the form of dividends and capital appreciation.
But for dividend investors looking to invest in bank stocks, which local bank is a better dividend stock to buy now? Here, I’ll compare DBS Group Holdings Ltd (SGX: D05) and United Overseas Bank Ltd (SGX: U11).
The idea is to get a quick overview of which bank might be a better buy now for dividend investors.
Disclaimer: This is not a sponsored post. Opinions expressed in the article by the author should not be taken as investment advice. Please do your own research and due diligence.
Financial Track Record
To start with, we will compare the financial performance of both banks in the last decade.
This will help us assess the sustainability of the banks’ performance in the future.
Also, we can find out which bank did better, financially, in the last decade. With that, let’s look at some numbers for both banks.
Again, we will start with DBS Group.
From 2008 to 2018, DBS’s total income grew from S$6.0 billion in 2008 to S$13.2 billion in 2018. Similarly, net profit attributable to shareholders grew from S$1.9 billion in 2008 to S$5.6 billion in 2018. The former was up by 120% while the latter was up by 194% during that period.
And now UOB.
During the same period, its total income grew from S$5.3 billion in 2008 to S$9.1 billion in 2018.
Similarly, net profit attributable to shareholders grew from S$1.9 billion in 2008 to S$4.0 billion in 2018.
The former was up by 72% while the latter was up by 111% during that period.
Both banks did well in growing their business in the last decade. Comparatively, DBS Group did better in growing its business, financially.
Winner: DBS Group
Dividend Track Record
The next comparison that we have here is to compare the dividend track record of the banks for the last 10 years. This will give us some indication of what we should expect in the future.
Let’s begin with DBS Group.
In the last decade, DBS Group has grown its dividend per share from S$0.65 in 2008 to S$1.20 in 2018. In other words, its dividend was up by 85% during the period.
And now for UOB, it has grown its dividend per share from S$0.60 in 2008 to S$1.20 in 2018. In other words, its dividend was up by 100% during the period.
As we can see, both banks have done reasonably well by sustaining, as well as growing their dividends over the decade. Among the two, UOB did better in growing its dividend during that period.
Overall, it’s a tie here.
From the above analysis, we can conclude that both banks have demonstrated stable financial and dividend track records, which render both of them worthy for dividend investors’ consideration.
Want More In-Depth Analysis And Discussion?
Why not check out Seedly’s QnA and participate in the lively discussion surrounding stocks like DBS Group Holdings Ltd, United Overseas Bank Ltd and many more!
Seedly Guest Contributor: The Motley Fool
For our Stocks Analysis, the Seedly team worked closely with The Motley Fool, who is an expert in the field, to curate unbiased, non-sponsored content to add value back to our readers.
The Motley Fool offers stock market and investing information, offering people suggestions on how to take control of their money and make better financial decisions.
The Motley Fool Singapore primarily covers the Singapore market, though we also bring investing news from around the world. We also host a range of educational content, written for everyday people. We feel that the best person to make your financial decisions is you, and we want to help you take control of your own money. The Motley Fool also champions shareholder values and advocates tirelessly for the individual investor.
If you have any questions on the mentioned stocks, feel free to discuss them with the Seedly Community here.
Read other articles by The Motley Fool:
- 8 Key Numbers To Understand CapitaLand Mall Trust Better
- Ascendas REIT Vs Mapletree Industrial Trust: Which Is The Better Buy?
- Singtel Vs Starhub: Which Stock Is The Better Buy?
- 2 Billion-Dollar REITs Yielding Above 6%
- StarHub Shares Have Fallen 64% In 5 Years: Is It A Bargain Now?
- 3 Blue-Chip Stocks Yielding More Than Your CPF Ordinary Account
- 3 Singapore Blue-Chip Stocks That Have More Than Doubled Their Profits In The Last Decade
- Singapore’s Top 10 Dividend Shares Among the World’s Best
- The Better Dividend Share: SIA Engineering Company Ltd or Singapore Technologies Engineering Ltd?
- Big Week For Earnings With DBS, OCBC, UOB And Two Property Giants
- 2 Singapore Blue-Chip Companies That Announced Weaker Results Recently
- How Singapore-Listed Banks Performed in 2018
- 5 Blue-Chip Shares That Have Raised Their Dividends In 2018
- 5 Singapore REITs That Have Grown DPU in 2018
- 3 Singapore Companies That Have Paid Dividends For More Than 20 Years
- 2 REITs To Watch This Week – Mapletree Commercial Trust And Mapletree Industrial Trust
- 2 REITs That Have Performed Well Recently – Mapletree Industrial Trust and Fraser Centrepoint Trust
- 2 Companies That Have Recently Announced Growth – DBS and Sheng Siong
- Keppel KBS US And Sasseur REIT Delivered 20%+ Return To Investors In 2019