$UOB(U11.SG)announced a 1H 2026 interim dividend of S$0.88 per share, with the ex-dividend date on 17 August 2026. At the same time, UOB reported a strong 2Q26, with net profit rising 10% YoY to around S$1.5 billion. The bank also highlighted strong growth in wealth management and continued momentum across its ASEAN businesses.
Seeing the upcoming dividend and UOB's solid business performance, I thought the share price around S$41.70 offered an attractive opportunity to enter. My thinking was that UOB could provide both dividend income and potential long-term capital appreciation.
I decided to buy UOB shares at S$41.70 on 13 August 2026.
The timing was just before the 17 August ex-dividend date, so I was also eligible for the S$0.88 interim dividend, assuming I met the relevant entitlement requirements.
After the ex-dividend date, the share price declined, closing at S$40.64 on 27 August, compared with my purchase price of S$41.70.
For UOB, I'm comfortable continuing to hold because I see it as a combination of dividend income + ASEAN growth + a strong banking franchise, rather than simply a dividend trade.
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