Is UOB at $27.86 a good BUY?

 

Singaporeans would be very familiar with UOB, though it is the smallest of the 3 local banks in terms of market capitalisation. Controlled by the Wee family over the past few decades, this bank has grown over the years to be a strong and reputable regional bank

The long term share price has also increased steadily from $10 during the Global Financial Crisis of 2009, peaking at $33 in 2022. Long term moving averages are sloping upwards, signalling the long term trend and growth should continue in the more years to come

In the short term though, we see the yellow MA10 line turning downwards, as price weaknesses continue to plague UOB and similarly with other two local banks of DBS and OCBC. We see the price of UOB trying to find support in the region of around $28, with another stronger and well tested support around $26

With UOB dividend of $0.75 in April 2023, and probably another dividend of $0.75 in August, the yield would translate into (0.75+0.75)/27.86 = 5.4% not too shabby for a well established bank. With bigger Reits (MIT/MLT/Areit) also offering somewhat 6% yield at around 90% payout, I would well prefer UOB which is only at 50% dividend payout. Not forgetting UOB is a much larger company and solid economic moat vs Reits

Would u also agree with my assessment on UOB? Let me know in the comments section below. Thanks  😎

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Is DBS at $32.7 a good BUY?