Added more OCBC to SRS portfolio

 

The share price of OCBC (SGX: O39) has plummeted from the recent high of $13.23 to $11.93 today, due to contagion fears over banking systematic risks caused by the collapse of Silicon Valley Bank and Signature Bank in the US.

This is a near 10% correction which is enough to trigger my temptation to accumulate shares.

The book value of OCBC is around $11.43 and ideally I would prefer to pay lesser than the book value.

However, I added 1,000 shares to my ultra long-term SRS portfolio when my order got filled at $11.93 this morning.

As OCBC is currently on cum dividend of $0.40, net cost less dividend is $11.53 which is slightly above book value only, at a fairly attractive dividend yield of more than 4.6%, assuming OCBC maintains an annual dividend of at least $0.56 for the next few years. The next dividend in Aug 23 of at least $0.28 should drive down my net cost to below book value.

I last added OCBC shares last year at $11.56 and also added OCBC shares 3 years ago at $7.87 during the market shake-up from onset of the pandemic.

With this addition, I will own 4,429* shares of OCBC at an average net cost of $9.54.

*Edit: I then bought another 71 shares from unit share market at $12.01. Currently own 4,500 shares of OCBC.

My plan remains the same till now - to slowly and steadily accumulate OCBC shares via dollar cost averaging in my SRS account for the ultra long-term, because my SRS account is owned by OCBC and I intend to own the bank which owns my retirement funds.

Be greedy when others are fearful!

Thanks for reading.

With Love & Peace,
Qiongster