DBS rally still has legs; it could scale new heights of over S$57 on robust dividend moves

[SINGAPORE] There is more room for DBS’ share price to continue rising in the months ahead, given the bank’s strong dividend outlook, analysts said.

Market watchers noted that DBS’ capital return plans are the strongest among the three local banks, and that investors appear to remain confident in the bank’s fundamentals.

“The bank has outlined its intended step-up in dividends for the next three years,” said Jayden Vantarakis, head of Asean equity research at Macquarie Capital. “In comparison, the two local peers remain on a payout ratio-based methodology of 50 per cent, implying absolute dividends could decline if earnings do.”