Which Bank to Buy?

Interest rates hike is imminent. Even though school taught us that past events cannot assist us to generate an abnormal risk-adjusted return.. well... I can argue this is not abnormal. Just about everyone is preying on the banks now, the sooner i go in, the better?

Anyway, i'll focus on the financials instead of the company's fundamental.

OCBC
P/E ratio: 9.42
Div Yield:  4.21
ROE: 12.16
FCF: Falling over last 3 years. Back up this quarter (0.26)
Dividends: 0.34 to 0.36 past 3 years. Expected to be 0.36. Increasing steadily since 2006.

DBS
P/E ratio: 8.92
Div Yield: 3.86
ROE: 11.34
FCF: Falling over last 3 years. Sudden sharp jump this quarter (2.56)
Dividends: Fell from 2006 and remain stable since 2009 at 0.6.

UOB
P/E ratio: 9.54
Div Yield: 3.84
ROE: 10.58
FCF: Volatile over 3 years but stayed positive. Recent quarter (0.01)
Dividends: Increased (stably) since 2006 to 0.7. Last year sudden increase to 1.1

Conclusion
OCBC scored the highest for 2/3 of my chosen metric.
DBS is cheap in terms of P/E ratio.
UOB only positive note is its stability.

As i'm looking at banks for growth rather than dividends, my dividend floor of 5% will be lifted when analysing whether to buy these stocks.

I think i would be looking at DBS and OCBC at the mean time. It seems like a good time to buy them. Probably 50-50 weight. (But DBS is so expensive). It should form 5% of my portfolio.

OCBC (O39) Target: 8.45
DBS (D05) Target: 15.30

Seems like I will unlikely get them. Lets see!

Also looking at Global ETFs. Targeting IWDA (LSE) at 40.50; EIMI (LSE) at 20

I admit that i have been a little aggressive in expanding my portfolio. That's why my target price is so far below the current. Got to rein in my impulse.

Watchlist Trigger/ Dividends Update

Short update on SGXcafe.

Been using for almost a week and Evan is a really nice person. He's the one making all this possible. 

SGXcafe has a 'Feedback' tool which users can send in any complaints or suggestions. 

Even though he is just a one-man-show, he resolved my queries in less than a week! One of my problems was Genting P9GZ coupons was not reflected under 'dividends'. 

It is resolved now.

I hope anyone of you reading can spread the message about SGXcafe. 

Its totally free, and just try it out. There's great data analytics tools, both predictive and historical trends.

You can even share your portfolio. 

You have the option to set the sharing preferences to allow only % to be shown so no one knows your portfolio value (so they dont know how rich you are).

Another thing I recently find useful is the 'Watchlist' Trigger Function.

Haven't tried how this works, i think it will be triggered only at 6pm each day so its not a real-time tool. Will update about this.

An easy way to track your Portfolio

I have stumbled onto this gem - SGXcafe, which helps you track, review and analyse your transactions and portfolio.

All you have to do is to Input all your transactions ("buy" and "sell") into the webpage. Dividends will be automatically updated. 

*Note: You can input the transactions one by one, but i recommend using the CSV function that is available in the webpage. Simply export your data into a new Excel worksheet, sort the data according to the SGXcafe's guidelines and "save as" a CSV file.

The Output (Some Best Features)

1. Portfolio Value (at previous day close; updated at 6pm)
2. Profit/loss figures (based on Portfolio Value - Cost)
3. Day change in Portfolio Value
4. Individual stock average purchase price
5. Upcoming/ Collected Dividends information

Extra Features

1. Dividend Strength (metric developed to quantify dividend stability)
2. Sharing of Portfolio
3. Watchlist, news

You can take a look at my Current Portfolio.

Previously, I have tracked my portfolio using Excel and VBA to get live stock quotes from Yahoo Finance. However, this is a tedious and awkward way to track and share your own portfolio.