Bank OZK (OZK) Stock Up 1.3% on New Share Repurchase Plan
Shares of Bank OZK OZK have rallied 1.3% in response to the announcement of a new share repurchase program. Under the plan, for which it has received “all required regulatory approval”, the company is authorized to buy back up to $300 million worth of shares.
Further, OZK noted that the repurchase program will expire on Nov 9, 2023. Notably, the company’s board of directors can modify or terminate the plan at any time.
Bank OZK’s previous plan, which was announced in 2021, had the authorization to buy back $650 million worth of shares and expired on Nov 4. As of Sep 30, 2022, OZK had $130.2 million worth of shares left to be repurchased.
Alongside share repurchases, Bank OZK increases its dividend on a quarterly basis. On Oct 3, the company announced a quarterly cash dividend of 33 cents per share, representing a 3.1% hike from the prior payout. The dividend was paid out on Oct 21 to shareholders of record as of Oct 14. This marked the 49th consecutive quarterly rise in dividend.
Considering the last day’s closing price of $47.58, Bank OZK’s dividend yield currently stands at 2.77%, which is impressive compared with the industry average of 2.26%. Not only is the yield attractive for income investors but it also represents a steady income stream.
OZK has raised its quarterly dividend 20 times in the last five years. Also, it has a five-year annualized dividend growth of 12.1%. Currently, the company's payout ratio is 29% of earnings.
Supported by its earnings strength and solid balance sheet, the company is expected to continue with efficient capital deployment activities. Through this, Bank OZK will keep enhancing shareholder value.
Over the past six months, shares of OZK have gained 26.2%, outperforming a 4.1% rise of the industry it belongs to.
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Currently, the company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Enhanced Capital Deployment Plans of Other Banks
Recently, banks like Prosperity Bancshares, Inc. PB and Associated Banc-Corp ASB announced an increase in their quarterly dividend payouts.
Prosperity Bancshares announced that its Board of Directors announced a quarterly dividend of 55 cents per share, representing a hike of 5.8% from the prior payout. The dividend will be paid out on Jan 3, 2023, to shareholders of record as on Dec 15, 2022.
Similarly, Associated Banc-Corp declared a regular quarterly cash dividend of 21 cents per share, marking a 5% increase from the prior payout. The dividend will be paid out on Dec 15 to shareholders of record as on Dec 1.
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