DBS dividend: a steady stream of income

DBS Group Holdings (DBS) is one of the largest banks in Southeast Asia. The bank has a strong track record of paying dividends to its shareholders. In recent years, DBS has paid a dividend of S$1.50 per share each year. This equates to a dividend yield of about 4% at the current share price.
DBS's dividend is well-covered by its earnings. In 2021, the bank's net profit was S$6.5 billion. This was enough to cover the dividend payment by more than two times. DBS also has a strong capital position, with a common equity tier 1 (CET1) ratio of 15.7%. This gives the bank plenty of flexibility to continue paying dividends in the future.
The bank's dividend policy is to pay out 50% of its net profit to shareholders. This policy is subject to review by the bank's board of directors each year. However, DBS has a track record of increasing its dividend payment over time. In the past 10 years, the bank's dividend has increased by an average of 5% per year.
DBS's dividend is a valuable source of income for investors. The dividend is well-covered by the bank's earnings and is likely to continue to grow in the future. As a result, DBS is a good option for investors who are looking for a steady stream of income.