Added more OCBC to SRS portfolio

 

The share price of OCBC (SGX: O39) has plummeted from the recent high of $13.54 to $11.56 today, due to a surprise 14% quarterly profit drop and perhaps affected by the restriction of trade financing for Russian raw materials.

This is a 14% correction which is enough to trigger my temptation to accumulate shares.

The book value of OCBC is around $11.45 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 $11.56 after the market closed.

As OCBC is currently on cum dividend of $0.28, net cost less dividend is $11.28 which is below book value, at a fairly attractive dividend yield of more than 4.5%, assuming OCBC maintains an annual dividend of at least $0.56 for the next few years.

I last added OCBC shares 2 years ago at $7.87 during the market shake-up from onset of the pandemic.

With this addition, I will own 3,429 shares of OCBC at an average net cost of $9.

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 SRS account.

Thanks for reading.

With Love & Peace,
Qiongster