How does the regional bank’s dividend stack up?
The post The Bank of Queensland (ASX:BOQ) share price is now trading on a forecast 4.4% fully-franked dividend yield appeared first on The Motley Fool Australia. –
The regional bank’s shares are hovering around November 2019 levels. However, they are still a long way off the record high $13 mark seen in 2015.
In early morning trade on Monday, Bank of Queensland shares are heading higher, up 0.11% to $8.71.
What did Bank of Queensland last report?
The bank delivered its full-year results for the 2021 financial year on 13 October. Investors reacted negatively to the news, sending the company’s shares down 4.32% on the day. This is despite Bank of Queensland reporting strong growth across key metrics.
In summary, statutory net profit after tax (NPAT) for FY21 rose 221% year over year to $369 million. An increased net interest income and credit to loan impairment expense, partly offset by higher operating expenses, underpinned the result.
Management notes that the digital transformation and ME Bank integration is executing as planned. Bank of Queensland is aiming for all of its retail brands to operate from a common cloud-based digital platform.
How much is the bank scheduled to pay in dividends?
Bank of Queensland will pay a fully-franked FY21 dividend of 22 cents per share on 18 November. This was a substantial increase on the first-half dividend of 17 cents and almost double the FY20 dividend of 12 cents.
When calculating against the current share price, Bank of Queensland is trailing on a forecast fully-franked dividend yield of 4.4%. The payout ratio is calculated to be 61% of the bank’s profits.
It’s worth remembering that the company has paid relatively consistent dividends over the years. Before the onset of COVID-19, the regional bank had been paying shareholders fully-franked dividends of above 30 cents on a biannual basis.
Bank of Queensland share price summary
In 2021, the Bank of Queensland share price has continued to rise in value, gaining more than 15% for investors.
Bank of Queensland commands a market capitalisation of $5.57 billion, with about 640.88 million shares on its books.
Should you invest $1,000 in Bank of Queensland right now?
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Motley Fool contributor Aaron Teboneras 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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.