Flight to quality, dividends lift DBS and OCBC to all-time highs, but analysts warn valuations look expensive

[SINGAPORE] Attractive dividend yields have pushed DBS and OCBC to fresh all-time highs, and will likely continue to support share prices going forward, even as analysts warn that valuations at the two lenders are starting to look stretched.

Both banks crossed their respective price targets following a rally earlier this week, prompting some analysts to caution that further upside may be limited.

Meanwhile, analysts are mostly neutral on UOB , as they expect investors need more clarity following a negative earnings surprise in the third quarter.