Income Investors Should Know The Bank OZK (NASDAQ:OZK) Ex-Dividend Date
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Attention dividend hunters! Bank OZK (NASDAQ:OZK) will be distributing its dividend of US$0.23 per share on the 22 April 2019, and will start trading ex-dividend in 4 days time on the 12 April 2019. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Bank OZK's latest financial data to analyse its dividend characteristics.
See our latest analysis for Bank OZK
5 questions to ask before buying a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Is its annual yield among the top 25% of dividend-paying companies?
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
Has dividend per share risen in the past couple of years?
Does earnings amply cover its dividend payments?
Will it be able to continue to payout at the current rate in the future?
How does Bank OZK fare?
The current trailing twelve-month payout ratio for the stock is 25%, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect OZK's payout to remain around the same level at 27% of its earnings. Assuming a constant share price, this equates to a dividend yield of 3.1%. In addition to this, EPS should increase to $3.49.
When considering the sustainability of dividends, it is also worth checking the cash flow of a company. A company with strong cash flow, relative to earnings, can sometimes sustain a high pay out ratio.
If there's one type of stock you want to be reliable, it's dividend stocks and their stable income-generating ability. OZK has increased its DPS from $0.13 to $0.92 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock.
Relative to peers, Bank OZK generates a yield of 3.0%, which is high for Banks stocks but still below the market's top dividend payers.
Next Steps:
With this in mind, I definitely rank Bank OZK as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. Given that this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. I've put together three essential factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for OZK’s future growth? Take a look at our free research report of analyst consensus for OZK’s outlook.
Valuation: What is OZK worth today? Even if the stock is a cash cow, it's not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether OZK is currently mispriced by the market.
Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
