Bank of the Ozarks, Inc. recently announced a 2.9% hike in its regular quarterly cash dividend. The new dividend of 17.5 cents per common share will be paid on Apr 21 to shareholders of record as of Apr 14. Prior to this hike, the company had increased its dividend by 3.03% (from 16.5 cents to 17.5 cents) in Jan 2017. This represents the 27th consecutive quarter of dividend increase.
Considering an annualized dividend of 70 cents, the annual yield of this stock comes to around 1.4%. While this doesn’t look too attractive, it enhances the potential returns from the stock given its underlying strength.
Here are some of the performance drivers:
Revenue Growth: Bank of the Ozarks’ revenues grew at a CAGR of 31.2% over the past five years (2012–2016). Revenues are projected to grow at a rate of 36.1% for the current year, highlighting constant upward momentum.
Earnings Strength: In the past 3–5 years, the company witnessed earnings per share (EPS) growth of 22.3% compared with 10.2% growth for the industry. The company’s earnings for the current year are projected to increase nearly 19.3%.
Comfortable Leverage Position: Bank of the Ozarks has a debt equity ratio of 0.14 compared with the industry average of 0.31, indicating a lower debt burden.
Superior Return on Equity (ROE): Bank of the Ozarks’ ROE of 11.19% compares with the industry average of 7.95%.
Price Performance: Shares of Bank of the Ozarks gained 26.9% in the last six months, outperforming 26.2% increase for the Zacks categorized Banks - Southeast industry.
Currently, this stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Stocks to Consider:
Some other stocks worth considering from the same industry are Access National Corporation , American National Bankshares Inc. and CenterState Banks, Inc. . All these stocks carry the same rank as Bank of the Ozarks.
Access National Corporation witnessed an upward earnings estimate revision of 0.6% for the current year over the past 60 days. Also, its share price increased 63.9% in the last one year.
American National Bankshares witnessed an upward earnings estimate revision of 1.5% for the current year over the past 60 days. Its share price increased 47.4% in the last one year.
CenterState Banks recorded an upward earnings estimate revision of 1.5% for 2017 over the same time frame. Its share price surged 71.8% over the last one year.
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Bank of the Ozarks Looks More Attractive on Dividend Hike
Bank of the Ozarks, Inc. recently announced a 2.9% hike in its regular quarterly cash dividend. The new dividend of 17.5 cents per common share will be paid on Apr 21 to shareholders of record as of Apr 14. Prior to this hike, the company had increased its dividend by 3.03% (from 16.5 cents to 17.5 cents) in Jan 2017. This represents the 27th consecutive quarter of dividend increase.
Considering an annualized dividend of 70 cents, the annual yield of this stock comes to around 1.4%. While this doesn’t look too attractive, it enhances the potential returns from the stock given its underlying strength.
Here are some of the performance drivers:
Revenue Growth: Bank of the Ozarks’ revenues grew at a CAGR of 31.2% over the past five years (2012–2016). Revenues are projected to grow at a rate of 36.1% for the current year, highlighting constant upward momentum.
Earnings Strength: In the past 3–5 years, the company witnessed earnings per share (EPS) growth of 22.3% compared with 10.2% growth for the industry. The company’s earnings for the current year are projected to increase nearly 19.3%.
Comfortable Leverage Position: Bank of the Ozarks has a debt equity ratio of 0.14 compared with the industry average of 0.31, indicating a lower debt burden.
Superior Return on Equity (ROE): Bank of the Ozarks’ ROE of 11.19% compares with the industry average of 7.95%.
Price Performance: Shares of Bank of the Ozarks gained 26.9% in the last six months, outperforming 26.2% increase for the Zacks categorized Banks - Southeast industry.
Currently, this stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Stocks to Consider:
Some other stocks worth considering from the same industry are Access National Corporation , American National Bankshares Inc. and CenterState Banks, Inc. . All these stocks carry the same rank as Bank of the Ozarks.
Access National Corporation witnessed an upward earnings estimate revision of 0.6% for the current year over the past 60 days. Also, its share price increased 63.9% in the last one year.
American National Bankshares witnessed an upward earnings estimate revision of 1.5% for the current year over the past 60 days. Its share price increased 47.4% in the last one year.
CenterState Banks recorded an upward earnings estimate revision of 1.5% for 2017 over the same time frame. Its share price surged 71.8% over the last one year.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>