Bank OZK (OZK - Free Report) has announced an increase in its regular quarterly cash dividend. The company has approved a dividend of 25 cents per share, representing 4.17% rise from the prior payout. The dividend will be paid on Oct 18 to shareholders of record as of Oct 11, 2019.
This marks the 37th consecutive quarter of dividend hike by the company.
Prior to this, it hiked its dividend by 4.4% to 24 cents per share.
Considering last day’s closing price of $26.15, Bank OZK’s dividend yield currently stands at 3.82%. Not only is the yield attractive for income investors but it also represents a steady income stream.
Given a robust capital position as well as lower debt-equity and dividend payout ratios compared with its peers, the company is expected to sustain its capital deployment activities. Hence, through consistent dividend payments, it will likely continue enhancing shareholder value.
While Bank OZK’s inorganic growth efforts are expected to keep supporting profitability; margin pressure mainly due to reduction of the high yielding purchased loan portfolio is a major near-term concern and might hurt top-line growth.
Looking at the company’s price performance, its shares have gained 14.5% so far this year, outperforming the industry’s growth of 8.1%.
Currently, Bank OZK carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other finance stocks, which raised their dividends during the past four months, include SunTrust Banks, Inc (STI - Free Report) , Virtus Investment Partners, Inc (VRTS - Free Report) and Northern Trust (NTRS - Free Report) . SunTrust raised its quarterly dividend by 12% while Virtus Investment increased by 22%. Northern Trust announced a 17% rise in its common stock dividend.
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