$UOB(U11.SG)announced a 1H 2026 interim dividend of S$0.88 per share, with the ex-dividend date on 17 August 2026.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$41.33 on 15 Sep, compared with my purchase price of S$41.70.

This trade reinforced an important lesson for me: I shouldn't focus too much on the dividend or try to time my purchase just before the ex-dividend date.

Even though the dividend is attractive, the share price can adjust after the stock goes ex-dividend, so receiving the dividend does not automatically mean I have made a profit.