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Shareholders can gain from DBS buying back shares, even at record prices

Shareholders benefit when companies actively manage capital, whether through dividends or share buybacks

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Leslie Yee

Leslie Yee

Published Wed, Nov 20, 2024 · 05:00 AM
    • With room to return capital, shareholders gain when DBS and its local peers focus on capital management moves.
    • With room to return capital, shareholders gain when DBS and its local peers focus on capital management moves. PHOTO: BT FILE

    CALL me agnostic. I am happy to receive extra cash, be it from my employer, the government or a company whose shares I hold. 

    Like many retail shareholders, I welcome listed groups rewarding shareholders with higher dividends on the back of business growth. Cash received can be used to fund new investments, or to treat oneself.

    Is it a no-brainer then that a listed group with excess capital should choose dividends over share buybacks, especially as many retail investors in the local market are dividend-fixated?

    DBSShare buybacksDividendsSingapore banksHock Lock Siew

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