Alvin Teo asked 1 month ago
Dear Admin,
I bought Maybank Malaysia at around average costs of RM8. Over the last three years, I have collected dividends. It seems now it is at its highest price for the past 5 years.
- Do you suggest to sell at this point given that it is inevitable that the interest will drop soon, and later buy back at a lower price albeit it may not drop to the price I bought earlier?
- Or continue to hold for dividend purpose and sell only if I need the money or the fundamental of the share is shaken?
- Is it a bad move to sell, considering the bank is going to declare another dividend soon at the end of August 2024?
Victor Chng Staff answered 1 month ago
When selling the banks, we focus on the fundamental valuation. You may want to answer these questions so I can guide you from here:
- What is the current dividend yield of Maybank compared to its historical high and low yields?
- What is the current price-to-book (PB) ratio of Maybank compared to its 10-year PB chart?
Alvin Teo
replied 1 month ago Dear Victor,
1) Current dividend yield of Maybank is approx 5.73%. Its historical high is approx 6.8%-7% and Low is 4+%.
2) Current price-to-book (PB) ratio of Maybank is 1.44.
Alvin Teo
replied 1 month ago Any Comments, Victor ?
Victor ChngHi Alvin,
Sorry for the late reply; I missed the notification. Based on your findings, it appears that Maybank is not currently trading at its historically low levels. Additionally, its book value seems to be trading around its 10-year average. In short, it is not cheap nor too expensive.
If you are consider selling, you need to take note of opportunity cost which means if you will to sell your Maybank shares what are the alternatives that are able to give you the same yield.
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