Company Name: OVERSEA-CHINESE BANKING CORP
| Research House: DMG | Price Call: HOLD | Target Price: 8.54 |
DMG & Partners raised its target price for Oversea-Chinese Banking Corp to $8.54 from $8.30 and kept its ’neutral’ rating, citing gains from the sale of its stake in Fraser and Neave and potential special dividends.
Shares of OCBC were up 1% at $9.39, and have gained nearly 20% since the start of the year, compared to the Straits Times Index’s 14.5% rise.
OCBC said it and its insurance unit Great Eastern Holdings will make a total post-tax gain of $1.15 billion from the stake sale in F&N to Thai Beverage and other companies linked to a Thai billionaire.
DMG said OCBC may pay out special dividends, but the amountwill not be significant as OCBC would want to retain capital toexpand its core financial business.
The brokerage estimates that OCBC’s potential special dividend could be up to 26 cents, but believes the bank will pay out less than that.
Impressive article.. I think that dividends are important for more than income generation: they also provide a way for investors to assess a company as an investment prospect. What’s your opinion on this?
ReplyDeletehigh dividend stock Singapore