UOB (U11) Guide — Share Prices, Dividends and Market News

UOB (U11) Guide — Share Prices, Dividends and Market News

United Overseas Bank (UOB) is one of Singapore’s major local banks. If you have a savings account or credit card in Singapore, there’s a fair chance it’s going to be from UOB. Some of their most popular products include the UOB One credit card, the UOB PRVI Miles card and the UOB One Savings Account.

After the omnipresent POSB/DBS, UOB’s ATM network is one of the more widespread. UOB Group also operates a stockbroker known as UOB Kay Hian.

As a major player in Singapore’s banking and investment services sector, UOB offers a full suite of services. Whether you are looking to open a savings account, invest in stocks, buy travel insurance or hire someone to manage your assets, you should be able to find offerings from UOB.

If you’re thinking of investing in UOB, here’s an overview of their stock profile.

Disclaimer: This article contains information on UOB stock prices as well as its recent performance trends. It is meant as a guide for readers only, not financial advice. Please practise your own discretion when making investment decisions.

 

UOB (U11 / UOBH.SI) overview

Sector Banking and investment services, banks
Year of incorporation 1935
Total Market Cap 33,442.77 million SGD
Historical share price Above 25 SGD for most of the past year, peaking at 27.970 SGD in April last year. Share price has plunged due to Covid-19.
Current share price 20.170
Current dividend yield 5.528%
Dividend yield 5-year average 3.682%

Note: The figures are accurate at the time of writing (Apr 2020), but due to the nature of this industry, this information changes very frequently. For the latest updates, do check the UOB (U11) SGX listing.

 

UOB (U11) Stock Profile: Share prices, dividends and more

UOB shares are traded on SGX, with a hefty total market capitalisation (number of shares x share price) worth over 33 billion SGD. It is one of the companies tracked by the Straits Times Index, which may be reassuring to some.

Until Covid-19 hit, the past three years were good ones for UOB, with share prices climbing steadily in 2017 before reaching a peak in May 2018. For most of 2019, share prices stayed for the most part above $25. Since the pandemic hit, however, share prices have declined, hitting a low of $17.57 in March 2020.

In terms of dividends, UOB has raised their twice-yearly payouts consistently over the past five years and currently boasts a decent dividend yield of 5.528%.

That being said, the company has been quite conservative about the percentage of its profits it pays out as dividends, which is actually a good thing for shareholders, as it gives them a better chance of maintaining their dividend payouts in the downturn.

 

About UOB (U11): Market news and updates

UOB, or United Overseas Bank Limited, was incorporated in 1935 and is one of Singapore’s major local banks, with over 500 offices in 19 countries and banking subsidiaries in Indonesia, Malaysia, Thailand and the Philippines. The company had 26,872 employees according to its 2019 annual report.

They offer a full suite of financial services similar to what other local banks are offering. These run the gamut from personal, private, commercial, corporate and investment banking services to venture capital management, asset management, insurance and stockbroking.

The company has also diversified its revenue streams by participating in other activities such as property development and hotel operations.

UOB’s biggest shareholder is Wee Investments with a 7.9% shareholding.

One look at the stock chart makes it clear that UOB has taken quite a beating due to Covid-19, and is part of the reason why the Straits Times Index has tanked as well.

For those who already have exposure to UOB stocks or who are thinking of using this as an opportunity to get your hands on some, analysts are generally optimistic about UOB in the long term.

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Concluding thoughts

While it is technically possible for UOB to fail completely, that isn’t likely. UOB has a diversified portfolio, strong fundamentals and has already announced measures to boost their balance sheet, such as by cutting savings accounts interest rates.

Their biggest exposure is home loans, which is fairly safe as those are secured. That’s certainly reassuring for shareholders who’re tearfully holding on to their UOB stocks right now.

In addition, UOB has enjoyed consistent and strong dividend growth over the years without going nuts and squeezing out every drop of their profits to pay to shareholders. That gives us more hope that they’ll continue to be able to pay out decent dividends.

So overall, UOB might be going through some tough times, but if the Singapore economy manages to bounce back from Covid-19, so too should this company’s stock prices.

Do you have any stock investment tips to share? Leave them in the comments!

 

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