Local banks should cap FY2020 dividends, offer shareholders alternatives to conserve capital: MAS
Read? Local banks should cap FY2020 dividends, offer shareholders alternatives to conserve capital: MAS
The central bank in its release called on locally-incorporated banks headquartered in Singapore to cap their total dividends per share (DPS) for FY2020 at 60 per cent of FY2019’s DPS, which it said balances the objective of capital conservation with the interests of shareholders.
"We have carefully calibrated the restriction on dividends, taking into account the needs of investors who may rely on this income.”
Retirees kena f... by MAS! Cham liao!
Ouch again!
ReplyDeleteAt start of 2020, dividend target was $80,000 (This was after achieving $78.8K in 2019)
Then in mid - 2020, target reduced to $60,000.
Now after this latest MAS guidelines, target reduced yet again to $50,000
Dividend collected from Jan to Jul 20 : $38,300
Even the $50,000 target is looking like a stretch.
Hard time for some retirees who may not be able to re calibrate their cash flow for few next years.
ReplyDeletePotential FI seekers want to like to review their income for life strategies.
At least not like in UK or EU, where both govts & central banks are telling their banks to give zero dividend, lol.
ReplyDelete2020 is basically washed out. For those with holding power > 3 years, these few months will be a period to buy stocks on pullbacks.
Hihi Uncle CW,
ReplyDeleteCome, I jio you to Ethereum savings account. Interest rate varies between 0.01% to 1500% per annum! Kekeke
Hell hath no fury like a yield hog scorned...
ReplyDeleteMorning open was a minor dip for the banks (as expected) until 10:20 am when someone dumped the bank stocks big time!
Oh well... Missed the trade.
Back to walk here, walk there I guess ;)
Ouch, double ouch.
ReplyDeleteDividend cut, portfolio value decimated. What next? When will the pain end? No more panadol.
Hope CPF interest rates can be sustained. Last line of "defense".
Oh I just got reply from CPF ... Even if RA already have FRS or more, one can still do cash refund to CPF for housing withdrawals + accrued interest. It will go into OA.
ReplyDeleteHmmm, sounds different from what Uncle8888 got in reply.
Btw, MAS didn't mention about buybacks? Banks can still do a ton of buybacks to boost stock prices. ;)
Guess maybe not so prevalent in S'pore as compared to overseas where buybacks are more tax efficient then dividends e.g. in US, dividend payouts are subjected to either income tax (for locals) or withholding tax (for foreigners).
You can refund your housing loan before 55 to CPF OA. Do it before celebrating your 55th birthday! LOL!
DeleteHeheh I asked them about after 55 scenario, with RA already created. They say still can?!? Think they should create black & white FAQ on this so that everybody can talk the same language. Lol!
DeleteLOL! Need to ask their Director. Why different answers given by CSOs?
Delete