UBS, Citigroup Differ on Singapore’s Move to Cap Bank Dividends
- Dividend cut will be seen as negative by investors: Citigroup
- Move won’t hurt long-term sustainability of payouts: UBS
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UBS Group AG and Citigroup Inc. are at odds on how Singapore’s move to cap dividend payouts at the nation’s banks will play out for equity investors.
Citigroup says the move will be viewed negatively by investors as dividend yield is an important factor when considering buying bank stocks. UBS sees the central bank’s move as prudent in the context of the coronavirus pandemic and no threat to the sustainability of payouts.