Yahoo Finance United Overseas Bank Ltd's Dividend Analysis
Assessing the Sustainability of UOVEY's Upcoming Dividend
United Overseas Bank Ltd (UOVEY) recently announced a dividend of $1.27 per share, payable on 2024-05-20, with the ex-dividend date set for 2024-04-25. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's delve into United Overseas Bank Ltd's dividend performance and assess its sustainability.
What Does United Overseas Bank Ltd Do?
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United Overseas Bank Ltd is a prominent financial institution with its roots in Singapore. It boasts a significant presence across key Asian markets, including Greater China and Southeast Asia, with Malaysia, Thailand, and Indonesia being notable contributors to its operations. Singapore remains its stronghold, accounting for approximately half of its total assets. The bank's comprehensive suite of services encompasses consumer, commercial and corporate banking, investment banking, corporate finance, treasury services, and a broad spectrum of wealth management, insurance, and brokerage services.
A Glimpse at United Overseas Bank Ltd's Dividend History
United Overseas Bank Ltd has upheld a reliable track record of dividend payments since 2006, with distributions occurring bi-annually. This consistent history is critical for investors seeking stable income streams. Below is a chart illustrating the annual Dividends Per Share, which provides insight into the historical trends of the company's dividend policy.
Breaking Down United Overseas Bank Ltd's Dividend Yield and Growth
As of today, United Overseas Bank Ltd's trailing dividend yield stands at 5.22%, with a forward dividend yield projected at 5.55%. This indicates a positive outlook, with an anticipated increase in dividend payments over the next year. Over the past three years, the bank's annual dividend growth rate was an impressive 19.40%, though this figure moderated to 9.10% when examined over a five-year period. Looking at a decade-long horizon, the growth rate remains robust at 8.10% annually. Reflecting on these figures, the 5-year yield on cost for United Overseas Bank Ltd stock is approximately 8.07%.
The Sustainability Question: Payout Ratio and Profitability
The sustainability of United Overseas Bank Ltd's dividends can be gauged by examining its dividend payout ratio, which currently stands at 0.47. This ratio indicates that a substantial portion of earnings is retained, which could fund future growth and cushion against downturns. The bank's profitability rank is 6 out of 10, reflecting fair profitability and consistent positive net income over the past decade.
Growth Metrics: The Future Outlook
United Overseas Bank Ltd's growth rank of 6 out of 10 suggests a solid growth trajectory. The bank's revenue per share and 3-year revenue growth rate indicate a strong revenue model, with an average annual increase of 14.80%, surpassing 77.08% of global competitors. Its 3-year EPS growth rate and 5-year EBITDA growth rate further affirm the company's ability to sustain dividends.
Next Steps
In conclusion, United Overseas Bank Ltd's forthcoming dividend, historical dividend growth, reasonable payout ratio, and solid profitability and growth metrics paint a picture of a robust dividend-paying stock. Investors seeking yield and growth should consider the bank's consistent performance and promising outlook. For those interested in discovering more high-dividend yield opportunities, GuruFocus Premium offers a comprehensive High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
