At the most basic level, the dividend per share for DBS this year is expected to be $3.24, based on the 81 cents distributed in 1QFY2026, comprising an ordinary dividend of 66 cents and a capital return of 15 cents.
A chance encounter with a retired bank CEO led to a comparison of bank valuations, with the discussion centring on the cost of equity, return on equity, growth and terminal growth.
Take DBS Group Holdings, which alone accounts for 25% of the Straits Times Index. How should banks be valued? What does the Gordon Growth Model tell us? And at $70 a share, how much further can DBS go?
