I never knew banks are good source of dividend income until lately

Like I wrote in my last post, as I just wanted a 5% dividend yield, a friend of mine told me that I could just put all my money into DBS and save all the trouble trying to diversify and look for undervalued stocks. Its technically true.

My dad only holds bank stocks and he just accumulates every now and then but never sells a single share for the last 20-30 years. When he was given a chance to get scrip shares instead of cash dividends, he would gladly do it.

I always wonder why he keeps holding them – never consider taking profit and buying them back when their share prices were low during all the crisis.

Whenever I asked him about it, his reply was the same, “Why should I sell them? They give good dividends, better than the fixed deposit.