The share price of OCBC (SGX: O39) has plummeted from the recent high of $13.23 to $11.93 today, due to contagion fears over banking systematic risks caused by the collapse of Silicon Valley Bank and Signature Bank in the US.
This is a near 10% correction which is enough to trigger my temptation to accumulate shares.
The book value of OCBC is around $11.43 and ideally I would prefer to pay less than the book value.
However, I added 1,000 shares to my ultra long-term SRS portfolio when my order got filled at $11.93 this morning.
As OCBC is currently on cum dividend of $0.40, net cost less dividend is $11.53 which is slightly above book value only, at a fairly attractive dividend yield of more than 4.6%, assuming OCBC maintains an annual dividend of at least $0.56 for the next few years. The