Excellent news from UOB and OCBC!
When DBS declared a particular dividend, I questioned if UOB and OCBC would do the identical.
Sadly, there isn’t a particular dividend from UOB and OCBC.
Nevertheless, they did declare larger ultimate dividends!
UOB elevated their ultimate dividend by 15c or 25%.
This is not too shabby since it is extremely near a 50% payout ratio.
We are able to most likely anticipate this to be the norm in future because it is not a particular dividend and, thus, unlikely to be a one off occasion.
As for OCBC, they hiked their ultimate dividend by 12c!
Whereas it’s decrease than UOB’s 15c hike in absolute phrases, it’s a lot larger in proportion phrases.
A rise of 12c from 28c to 40c is an virtually 43% hike!
I’m so shocked like vegetable!
OCBC is just not solely one among my largest investments.
OCBC is my largest funding in equities.
My funding in OCBC is far bigger than my funding in UOB.
So, my passive revenue within the type of a ultimate dividend from OCBC goes to be very a lot bigger this 12 months in comparison with final 12 months.
That is particularly after I elevated the scale of my funding in OCBC many occasions in 2H 2022.
Though my conflict chest was somewhat depleted, I used to be in a position to do that by decreasing my investments in Centurion Corp. and ComfortDelgro which have been each underperforming.
In my weblog on Wilmar’s document dividend, I mentioned I used to be feeling somewhat giddy.
I believe it simply bought worse.
See the brand new photograph of AK beneath.
I slapped myself arduous and reminded myself that the upper dividends from our native lenders will go some strategy to filling shortfalls from Sabana REIT, CapitaLand China Belief and IREIT World this 12 months.
Nonetheless early days, to keep away from doable disappointment, I’m preserving expectations low almost about full 12 months passive revenue for 2023.
In spite of everything, I can not dictate how a lot my investments ought to pay me.
I’ll proceed to train prudence in terms of bills as, usually, that is one thing I’ve appreciable management over.
Nevertheless, to be trustworthy, I’m feeling extra sanguine about this 12 months’s passive revenue now.
Whether or not the 12 months would finish on a excessive observe for me as an investor for revenue ought to change into clearer in one other 6 months or so from now.
Until then, I simply need to affected person and wait.
“Wall Road makes its cash on exercise. You make your cash on inactivity.”