Insights

Is the BOQ (ASX:BOQ) share price a buy for dividends?

Is BOQ worth thinking about for income?
The post Is the BOQ (ASX:BOQ) share price a buy for dividends? appeared first on The Motley Fool Australia. –

Could the Bank of Queensland Limited (ASX: BOQ) share price be worth looking at right now?

BOQ is one the largest second tier ASX banks below Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group Ltd (ASX: ANZ).

What has happened to the BOQ share price recently?

Today, the BOQ share price is down. The lockdowns are ongoing in Sydney and Melbourne. But the share prices of CBA, Westpac, ANZ and NAB are down a little more than BOQ at the time of writing.

BOQ shares are up almost 49% over the last 12 months. However, since March 2021, it hasn’t moved much.

In April 2021, the bank announced its FY21 half-year result. The company revealed growth across a number of areas.

Half-year cash earnings after tax went up 9% to $165 million. Statutory net profit after tax (NPAT) grew by 66% to $154 million. The net interest margin improved by 3 basis points to 1.95%. BOQ’s common equity tier 1 (CET1) capital ratio improved by 12 basis points to 10.03%.

Income-seekers may have noticed that the bank paid an interim dividend of 17 cents per share, which was an increase of 11 cents per share.

At the time of the HY21 result, BOQ said that the economic outlook appears more positive and is showing encouraging signs of improvement. The bank also said it remains committed to sustainable profitable growth, supporting returns to shareholders and a dividend payout ratio target range of 60% to 75% of cash earnings.

The ME Bank acquisition

BOQ recently completed the acquisition of ME Bank for a cash consideration of $1.325 billion.

When the regional bank first announced the deal, it said it would create a compelling alternative to the big banks.

The deal is expected to deliver material scale, broadly doubling the retail bank and providing diversification. Management believe there is a clear pathway to a scale, common, cloud based digital retail bank technology platform.

BOQ believes the deal is financially compelling. It’s expected to be low double-digit to mid-teens accretive for cash earnings per share (EPS). It’s expected to be cash return on equity (ROE) accretive by over 100 basis points including full run-rate synergies in the first year. Anticipated annualised pre-tax synergies are expected to be $70 million to $80 million.

 The BOQ managing director and CEO George Frazis said:

The acquisition of ME Bank is strategically aligned and financially compelling. It further strengthens our multi-brand strategy, delivers material scale, provides portfolio diversification and enables the acceleration of the digital strategy towards a common digital retail bank technology platform.

Is the BOQ share price a buy for dividends?

The brokers at Macquarie Group Ltd (ASX: MQG) believe that BOQ shares are a buy, with a price target of $10. That suggests the BOQ share price could go up over 10% in the next 12 months, if it ends up being correct.

Macquarie believes that BOQ will pay an annual dividend of 37 cents in FY21 and 47 cents in FY22. That translates into a fully franked dividend yield of 4.2% and 5.3% respectively.

The post Is the BOQ (ASX:BOQ) share price a buy for dividends? appeared first on The Motley Fool Australia.

Should you invest $1,000 in BOQ right now?

Before you consider BOQ, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BOQ wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Top brokers name 3 ASX shares to buy next week

The Bank of Queensland (ASX:BOQ) share price is having a good year. Here’s why
The Bank of Queensland (ASX:BOQ) has officially acquired ME Bank
Bank of Queensland shares outperforming all ASX 200 banks this month

Why this broker reckons Bank of Queensland (ASX:BOQ) shares are a buy

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
Trade The US Market With ZERO Brokerage* + FREE Access To Trading Ideas & Value Analysis Tools. Click Here!