It depends on how many shares you have, and what platform you use. If you have at least 1,500 shares, then reinvest. If less, take the dividend.
If suppose you have 1,500 shares, you'd be entitled to 1,500 x RM0.25 = RM375 dividend. Of this, 1,500 x RM0.10 = RM150 could be reinvested at RM5.17 per share for 29 shares. Add RM13 stamp charges, etc., and your per-share cost would become RM5.62, which is slightly lower than the current market price. If you only have 1,000 shares, your per-share cost would become RM5.94.
The chart is showing early signs of a move up, following the drop in price since it went ex. dividend recently. No doubt we'll get confirmation one way ot the other with the upcoming quarterly report. I'd be comfortable with a quarterly EPS around the 16 cent mark and anything else would be a bonus.
Those who had bought RHB on Friday 13/5 at RM6.04/05 before it went ex-dividend the following Monday had made a correct decision. Now a cool RM0.25 gain.
The technicals are beginning to look a little bit interesting for RHB........well, as interesting as anything can be in this current market environment! This might be the start of a price "recovery" that has softened the price recently due to market sentiment and the 25 cent dividend drop.
I decided to look at the Maybank chart for any similarities that might show perhaps a slight change in bank sentiment. There is a hint of a possible reversal in the Maybank chart but perhaps not as defined as the RHB chart.
I'll be surprised in the Funds don't start to nudge bank stocks up during this second half of 2022, but I'm a bit reluctant to confirm whether this is the start of a move up or not.
@Yt Chong, I posted a couple of weeks ago that I thought the chart was starting to look a little bit interesting for a bit of a move north........although I mentioned I was a bit sceptical because of the market, I still got it wrong. Even an interest rate rise did nothing to move any of the banks.
Two weeks ago the KLCI was around 1,445 and today we are flirting with 1,415.........so I guess those two figures point out why RHB and other banks are currently sitting where they are. Overall market sentiment is woeful, which is understandable.
Hoping for a break above 5.75 to break out of its current price band. It needs a lot more volume though. Strangely, a lot of its current daily volume comes in during the end of day match up auction. The chart's ok but it might be just as technically astute to toss a coin these days.
Now that the RM5.73 resistance has been broken, RHB is en route to greater heights? Hopefully it can go beyond RM6 so that I can unload a little bit just in case recession hits.
RHB has finally broken out of the recent trading band, along with other banks. Too early to say that this is the start of a sustained rise for banks for the second half of 2022, which has been touted so often in the first half of the year.
For the short term, I'd like to see RHB break 5.85 convincingly, then use that point as a short term support.
Let's see how it, along with other banks, plays out.
RHB valuations are supported by OPR but not necessary the best of the best stock. OSKH is more money for value. Half of its asset valuation is RHB ($5.80) and the other half worth($2.00) But market only give 90sens
It feels a bit like deja vu following the RHB price points. With 5.85 broken and used as a support, the next logical target is around 5.97, very similar to its price path earlier this year.
With the quarterly due late this month along with an anticipated dividend attached to it, the question might be whether it has enough petrol in the tank to yet again break through 6.00 again.
Obviously as a holder, I hope so. Worth a BUY call to either top up or enter if it was to slip below 5.85, imo.
RM9 a share is achievable if earnings move up to over 70sen a share. Unlikely to happen this year or next. Even if RHB achieves this feat three years later, investors still stand to make lots of money if they invest today.
It's had a couple of soft attempts to take on 5.97 this week but couldn't quite do it. I'm fairly confident it should break fairly soon and could possibly happen on Monday (15th) and once broken the obvious question will be when will it break the psychological barrier of Rm6 and can it remain above that "barrier".
I see a similar scenario playing out at Maybank with the RM9 "barrier".
ps. @skyskysky, you might want to recheck your dividend prices.
with RHB start having DRP policy.. can expect it will declare higher dividend compare with previous years... unless the 2021YA dividend is only exceptional case..
No problem @skyskysky....when you said dividend I didn't look any further to what you may have meant, as I knew how much I'd already received in divvies for FY21.
@ikanbiliskering, I would have thought that the 5.97 price point would have been broken on Monday, epecially with the current strong market. My guesstimate was that RHB would break 6.00 around the same time Maybank breaks 9.00, but wrong again! :)
Maybe investors are waiting for the quarterly to make a decision on buying. Ahhh, the joys of trying to anticipate the market !
RHB Bank has significantly increased its dividend payout from an average of 21 sen a share for the years 2017 to 2020 to 40 sen last year. This year's dividend payout should be maintained or even increased as its largest shareholder needs to replenish its coffers due to heavy withdrawals by its members. Fingers crossed.
To me, it makes no sense why this is trading at current prices of 5.72. Unless the upcoming quarterly is weaker than expected and has an EPS significantly below 15 cents, then it should be priced higher.
With the market having a natural pullback from its recent upward move, then maybe RHB could test 5.60..........but that would be a surprise and disappointment for me.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
LouiseS
286 posts
Posted by LouiseS > 2022-05-21 19:18 | Report Abuse
大马九大银行股哪一家最值得投资?
https://youtu.be/Q6Hw0ITlkvQ