Why OCBC Became the Largest Holding in My Dividend Portfolio

When other investors first look at my dividend portfolio, one question seems to come up more often than any other.  Why is Oversea-Chinese Banking Corporation (OCBC), and not Development Bank of Singapore (DBS), my largest holding?  After all, DBS is widely regarded as Singapore's premier bank.  It consistently delivers strong earnings, generous dividends and has rewarded shareholders exceptionally well over the years.  It would seem natural for DBS to occupy the largest position in a dividend portfolio.

Yet today, OCBC accounts for approximately 21% of my portfolio, taking up the top allocation while DBS makes up around 14% in second place.  The answer has very little to do with predicting which bank would perform better.  Instead, it reflects my own investing journey, one that began with a simple misconception shared by many new investors.

My Investing Journey Began with Share Price, Not Valuation

When I started building my dividend portfolio in end of 2017, I was investing with relatively limited capital.  Every purchase had to be carefully considered, and psychologically it felt easier buying companies with lower share prices.  In 2019, when I decided to include banks into my portfolio, OCBC happened to fit comfortably within my budget.

At that point, I was not studying valuation metrics or comparing return on equity between the three local banks.  Price-to-book ratios, dividend payout ratios and earnings forecasts were not the factors driving my decision.  The only thing I noticed was that OCBC's share price looked much more affordable than DBS or United Overseas Bank (UOB).

Looking back, I now know that a stock's share price alone tells us almost nothing about whether it is cheap or expensive.  A company trading at SGD 50.00 can easily be better value than one trading at SGD 5.00.  But experience is often the best teacher, and this was one lesson I had yet to learn.

Building My Position One Purchase at a Time

When OCBC's share price was still hovering around between SGD 9.00 to SGD 11.00 per share in early 2019, I began buying OCBC shares, 200 shares at a time.  Fast-forward to one year later in 2020, the COVID-19 pandemic turned out to be one of the most important periods in my investing journey.  As markets fell sharply and uncertainty dominated the headlines, I continued accumulating OCBC whenever I had available cash, at around SGD 8.00 to SGD 9.00 per share.  Those early investments eventually became the foundation of what is now the largest position in my portfolio.

As the economy recovered and the banking sector regained its strength, I continued buying OCBC even as the share price climbed.  The last few purchases of OCBC shares were done in between February to May 2025, at prices ranging between SGD 16.00 to SGD 17.50 per share.  Some investors dislike averaging up, believing they should only buy below their original purchase price.  I have gradually come to see things differently.

As long as the business continues to grow and the original investment thesis remains intact, paying a higher price than before is not necessarily a mistake.  This is especially so when my average holding cost remains low, so the large safety margin gave me the confidence to accumulate shares.  Long-term wealth is often built through consistent accumulation rather than waiting endlessly for perfect prices.  However I am now hesitant to add more OCBC shares above SGD 20.00 per share.  I am just holding on to my shares to enjoy the ride, and the dividends.

The Opportunity I Nearly Let Slip Away

Looking back today, I find one part of my investing journey rather ironic.  During 2019 and 2020, both DBS and UOB traded at prices that now seem incredibly attractive.  Both DBS and UOB were trading below SGD 30.00 per share back then, and both also traded below SGD 20.00 at the peak of the pandemic.  Yet I hesitated.

The hesitation was not because I doubted the quality of either bank, not because I believed OCBC was significantly superior.  I simply could not get comfortable paying a higher share price.  That hesitation would eventually cost me several years of accumulation.

When FOMO Replaced Hesitation

By 2024, the situation had completely reversed.  DBS had continued producing record profits, raising dividends and rewarding shareholders year after year.  Its share price had risen well beyond where I had originally considered "too expensive".  Ironically, I finally began buying DBS at around SGD 35.00 per share.  UOB followed a similar path, with my purchases beginning at around SGD 28.00.  Looking back honestly, those decisions were influenced by something that most investors have experienced at some point.  Fear of missing out.

Watching high-quality businesses continue to perform while remaining on the sidelines is uncomfortable.  Eventually I accepted that waiting for the perfect entry price might simply result in never owning the company at all.  Fortunately, the decision to finally invest in DBS (and UOB) proved to be a rewarding one.  Sometimes buying a great business slightly later is still far better than never buying it at all.

Why OCBC Still Holds the Top Spot

Although DBS has delivered outstanding returns since I began accumulating it, there simply has not been enough time for it to catch up.  OCBC benefited from several years of consistent purchases before DBS ever entered my portfolio.  It received the bulk of my investment capital during the early years.  Its dividends were reinvested.  The share count continued growing year after year.

By the time I started building meaningful positions in DBS and UOB, OCBC already had a substantial head start.  That head start remains visible today.  OCBC represents around 21% of my portfolio, while DBS has grown remarkably quickly to become my second-largest holding at approximately 14%.  Had I started buying DBS in 2019 instead of waiting until 2024, my portfolio might look very different today.  Maybe this is the best evidence that invest early pays off.

Looking Back Without Regrets

It is easy to look at today's prices and wish I had bought more DBS when it traded below SGD 30.00.  Hindsight always makes investing look straightforward.  The reality is that every investor makes decisions based on the knowledge, confidence and emotions they have at that particular point in time.  My early purchases of OCBC were not driven by sophisticated analysis.  They were driven largely by affordability and the comfort of seeing a lower share price.

My later purchases of DBS were influenced, at least in part, by the fear of missing another opportunity.  Neither decision was perfect.  Yet both decisions contributed positively to where my portfolio stands today.  Perhaps that is one of the most reassuring aspects of long-term investing.

A successful portfolio is rarely built by making perfect decisions every time.  More often, it is built through consistent investing, continuous learning and allowing time to work its magic.  When I look at my portfolio today, I no longer see OCBC as simply my largest holding.  I see it as a reminder of where my investing journey began.  DBS, meanwhile, reminds me that it is never too late to recognise a mistake, adjust course and continue investing in great businesses.  The most important lesson for me here would probably be to review valuations instead of just looking at price.

The composition of my portfolio may continue to change over the years, but the lessons behind it will probably stay with me for the rest of my investing journey.  Barista FIRE, here I come...!