Bank OZK OZK announced a quarterly cash dividend of 41 cents per share. This indicates an increase of 2.5% from the prior payout. The dividend will be paid out on Oct. 18, 2024, to shareholders of record as of Oct. 11. This marks the 57th consecutive quarter of a dividend hike by OZK.
Prior to this, the bank increased its dividend by 2.6% to 40 cents per share in July 2024. The company has a five-year annualized dividend growth of 10.17%. At present, its payout ratio is 26% of its earnings. This indicates that it retains adequate earnings for reinvestment and future growth initiatives while still delivering lucrative returns to its shareholders.
Based on its closing price of $41.67 as of Oct. 1, 2024, Bank OZK’s current dividend yield is 3.9%.
The company’s impressive track record of consistently increasing dividends has earned it a place in the S&P High Yield Dividend Aristocrats index since January 2018. This index includes companies from the S&P Composite 1500 that have followed a disciplined dividend policy, raising their common stock dividends every year for at least 20 years, while meeting minimum float-adjusted market capitalization and liquidity requirements.
OZK’s Share Repurchase Program
In July 2024, the company announced a new share repurchase program worth $200 million with an expiration date of July 1, 2025.
Before this, the company announced a repurchase plan in November 2022, authorizing the buyback of up to $300 million shares, which expired in November 2023.
Our View on Bank OZK
Bank OZK has a solid balance sheet. As of June 30, 2024, the company had total debt (comprising other borrowings and accrued interest payable and other liabilities) of $846.9 million, significantly lower than cash and cash equivalents of $2.6 billion as of the same date.
With its strong liquidity position, a lower debt-to-equity ratio of 0.17 (compared to the industry average of 0.37), and a favorable dividend payout ratio, the company is well-positioned to continue its capital distribution activities. Through this, Bank OZK will keep enhancing shareholder value.
In the past three months, shares of OZK have gained 2.4% compared with the industry’’s growth of 14.3%.
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 Stocks Announcing Dividend Hikes
In September 2024, City Holding Co. CHCO announced a quarterly cash dividend of 79 cents per share. This reflects a 10.5% hike from the prior payout. The dividend will be paid out on Oct. 31, 2024, to shareholders of record as of Oct. 15.
Before the latest hike, CHCO increased its dividend by 10% to 71.5 cents per share in September 2023.
In the same month, NorthEast Community Bancorp, Inc. NECB announced a quarterly cash dividend of 15 cents per share. This reflects a 50% hike from the prior payout.
Besides this, NECB also announced a special cash dividend of 15 cents per share. Both dividends will be paid out on Nov. 6, 2024, to shareholders of record as of Oct. 4.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
