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Bank OZK (OZK) Announces 2.8% Hike in Quarterly Dividend
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Bank OZK (OZK - Free Report) has yet again announced a hike in its quarterly dividend. The company declared a quarterly cash dividend of 37 cents per share, marking an increase of 2.8% from the prior quarter. The dividend will be paid out on Oct 20 to shareholders of record as of Oct 30. This represents the 53rd consecutive quarter of a dividend hike.
Prior to the recent hike, OZK raised its dividend by 2.8% to 36 cents per share in July 2023. Also, the company has a five-year annualized dividend growth of 10.6%. Currently, the company's payout ratio is 26% of earnings.
Considering yesterday’s closing price of $35.79, Bank OZK’s dividend yield is currently pegged at 4.14%, which is above the industry average of 3.19%.
Bank OZK’s track record of consistent dividend hike has led to it being included in the S&P High Yield Dividend Aristocrats index since January 2018. The index includes the members of the S&P Composite 1500 that have maintained a managed-dividends policy of consistently increasing common stock dividends every year for at least 20 years and that meet minimum float-adjusted market capitalization and liquidity requirements.
Apart from regular dividend hikes, Bank OZK has a share repurchase program in place. It announced a new buyback program in November 2022, under which it is authorized to repurchase up to $300 million worth of shares. During the first six months of 2023, the bank repurchased 4.3 million shares for $151.5 million. As of Jun 30, 2023, the plan (set to expire on Nov 9, 2023) had $133.5 million authorization remaining.
Bank OZK maintains a decent liquidity position. The company had total debt of $1.50 billion and cash and cash equivalents of $1.45 billion as of Jun 30, 2023. Thus, regular dividend hikes will still be sustainable, even if economic situation worsens.
Given a robust capital position, as well as lower debt-equity and dividend payout ratios compared with peers, the company is expected to sustain its capital distribution activities. Through this, Bank OZK will keep enhancing shareholder value.
Over the past six months, shares of Bank OZK have gained 6.9% against the industry’s fall of 4.1%
Recently, City Holding Company (CHCO - Free Report) and Fifth Third Bancorp (FITB - Free Report) announced increases in their quarterly dividend payouts.
City Holding announced a quarterly cash dividend of 71.5 cents per share, indicating an increase of 10% from the prior payout. The dividend will be paid out on Oct 31 to shareholders of record as of Oct 13.
CHCO’s annual dividend yield, post the dividend hike, is pinned at 3.16% based on yesterday’s closing price of $90.24. City Holding raised its quarterly dividend six times in the last five years. Also, it has a five-year annualized dividend growth of 4.5%. Currently, the company's payout ratio is 32% of earnings.
Fifth Third Bancorp announced a quarterly cash dividend of 35 cents per share, reflecting an increase of 6% from the prior payout. The dividend will be paid out on Oct 16 to shareholders of record as of Sep 30.
This marks the eighth consecutive year of dividend hike by FITB. Fifth Third Bancorp’s annual dividend yield is pegged at 5.53% based on yesterday’s closing price of $25.33. Also, it has a five-year annualized dividend growth of 9.7%. Currently, the company's payout ratio is 36% of earnings.
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Bank OZK (OZK) Announces 2.8% Hike in Quarterly Dividend
Bank OZK (OZK - Free Report) has yet again announced a hike in its quarterly dividend. The company declared a quarterly cash dividend of 37 cents per share, marking an increase of 2.8% from the prior quarter. The dividend will be paid out on Oct 20 to shareholders of record as of Oct 30. This represents the 53rd consecutive quarter of a dividend hike.
Prior to the recent hike, OZK raised its dividend by 2.8% to 36 cents per share in July 2023. Also, the company has a five-year annualized dividend growth of 10.6%. Currently, the company's payout ratio is 26% of earnings.
Considering yesterday’s closing price of $35.79, Bank OZK’s dividend yield is currently pegged at 4.14%, which is above the industry average of 3.19%.
Bank OZK’s track record of consistent dividend hike has led to it being included in the S&P High Yield Dividend Aristocrats index since January 2018. The index includes the members of the S&P Composite 1500 that have maintained a managed-dividends policy of consistently increasing common stock dividends every year for at least 20 years and that meet minimum float-adjusted market capitalization and liquidity requirements.
Apart from regular dividend hikes, Bank OZK has a share repurchase program in place. It announced a new buyback program in November 2022, under which it is authorized to repurchase up to $300 million worth of shares. During the first six months of 2023, the bank repurchased 4.3 million shares for $151.5 million. As of Jun 30, 2023, the plan (set to expire on Nov 9, 2023) had $133.5 million authorization remaining.
Bank OZK maintains a decent liquidity position. The company had total debt of $1.50 billion and cash and cash equivalents of $1.45 billion as of Jun 30, 2023. Thus, regular dividend hikes will still be sustainable, even if economic situation worsens.
Given a robust capital position, as well as lower debt-equity and dividend payout ratios compared with peers, the company is expected to sustain its capital distribution activities. Through this, Bank OZK will keep enhancing shareholder value.
Over the past six months, shares of Bank OZK have gained 6.9% against the industry’s fall of 4.1%
Image Source: Zacks Investment Research
Bank OZK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Banks Taking Similar Steps
Recently, City Holding Company (CHCO - Free Report) and Fifth Third Bancorp (FITB - Free Report) announced increases in their quarterly dividend payouts.
City Holding announced a quarterly cash dividend of 71.5 cents per share, indicating an increase of 10% from the prior payout. The dividend will be paid out on Oct 31 to shareholders of record as of Oct 13.
CHCO’s annual dividend yield, post the dividend hike, is pinned at 3.16% based on yesterday’s closing price of $90.24. City Holding raised its quarterly dividend six times in the last five years. Also, it has a five-year annualized dividend growth of 4.5%. Currently, the company's payout ratio is 32% of earnings.
Fifth Third Bancorp announced a quarterly cash dividend of 35 cents per share, reflecting an increase of 6% from the prior payout. The dividend will be paid out on Oct 16 to shareholders of record as of Sep 30.
This marks the eighth consecutive year of dividend hike by FITB. Fifth Third Bancorp’s annual dividend yield is pegged at 5.53% based on yesterday’s closing price of $25.33. Also, it has a five-year annualized dividend growth of 9.7%. Currently, the company's payout ratio is 36% of earnings.