SCB with an Amazing Dividend Yield at 6.5%, Expecting ฿4.25/Share Payment in April!

The Board of Directors of The Siam Commercial Bank Public Company Limited (SCB) has passed a resolution to approve a dividend payment policy to be over 50% from the previous policy at 30-50%.

 

The analyst expects another dividend payment of ฿4.25/share from the operations of the second half of 2019, which would represent a 5% dividend yield. Following SCB’s payment timeline every year, the analyst predicts that the dividend payment would be in April 2020.

The expected dividend payment in the second half of 2019 would add up to the payment in the first half at ฿1.50/share and a recent special dividend payment at ฿0.75/share, resulting in a 6.5% dividend yield for the year.

Nevertheless, the bank is expected to pay a dividend at a rate of 35% for the next two to three years until the SCB10X strategy can generate profit and raise SCB’s ROE to the level the company expected.

 

ASL Securities has given a “Buy on Weakness” recommendation on SCB while lowering the target price at ฿113.00/share.