If You Invested $10,000 in UOB 10 Years Ago, Here’s How Much You’d Have Today

Core Insights - The article illustrates the long-term investment potential of United Overseas Bank Limited (UOB), emphasizing the benefits of compounding through dividends and capital appreciation over a decade. Investment Performance - In 2015, UOB shares were priced at S$24.50, allowing an investment of S$10,000 to purchase 400 shares [2] - The share price experienced a significant drawdown of -31.4% to S$16.81 in early 2016, but later appreciated by 79.3% to S$30.14 by early 2018 [3] - From the 2018 peak, the share price declined by 41.7% to a COVID-low, followed by a rally of 95.5% to S$32.86 by early 2022, resulting in a 34.1% increase from the initial buy point [4] - The share price then fell 20.9% to S$25.99 in late 2022, before rebounding 48.8% to a recent high of S$38.67, with the current price at S$34.93 as of October 16, 2025 [5] - Overall, the capital gain from the initial investment is 42.6%, translating to a compound annual growth rate (CAGR) of 3.6% [6] Dividend Income - UOB has consistently paid dividends over the past decade, totaling S$13.28 per share since 2015, including special dividends [7] - An investor holding 400 shares would have earned S$5,312 in passive dividend income [8] - The dividend yield in 2015 was 2.9%, increasing to 5.4% in the last twelve months, with a payout ratio rising from 36.3% to 50.6% [9] Total Shareholder Return - The total gain for a UOB investor over the past decade is S$9,484, bringing the total investment value to S$19,484, which is a 94.8% increase from the initial purchase price [10] - The CAGR of the investment over the last ten years is 7.0%, outperforming the Straits Times Index's CAGR of 6.3% [10] Financial Performance - UOB's net interest income (NII) grew from S$4.9 billion in 2015 to S$9.7 billion by June 2025, with a CAGR of 7.3% [11] - The bank's loan book expanded at a CAGR of 5.4% to S$342.9 billion, supporting its strong dividend policy [12] - UOB maintains a strong CET1 ratio of 15.3% in 1H2025, significantly above the regulatory standard, providing resilience against market fluctuations [13] Investment Philosophy - UOB exemplifies the advantages of long-term investing in quality dividend-paying stocks, highlighting the importance of patience and compounding for wealth accumulation [14] - The article concludes that a long-term mindset can lead to rewarding outcomes for investors, emphasizing the value of holding strong dividend-paying shares through market cycles [15]