Bank OZK (NASDAQ:OZK) Increases Dividend to $0.49 Per Share

Key Points

• Bank OZK raised its quarterly dividend 2.1% to $0.49 per share, equivalent to $1.96 annually and a 4.2% yield. The dividend is payable October 20 to shareholders of record October 13.
• The bank has increased its dividend for 29 consecutive years, with a current earnings payout ratio of 29.6%, indicating substantial coverage.
• Bank OZK also authorized a $200 million share-repurchase program, allowing it to buy back up to 3.4% of outstanding shares; its latest quarterly EPS of $1.49 slightly exceeded analyst expectations.

Bank OZK (NASDAQ:OZK - Get Free Report) announced a quarterly dividend on Thursday, October 1st. Stockholders of record on Tuesday, October 13th will be paid a dividend of $0.49 per share on Tuesday, October 20th. This represents a $1.96 annualized dividend and a dividend yield of 4.2%. The ex-dividend date of this dividend is Tuesday, October 13th. This is a 2.1% increase from Bank OZK's previous quarterly dividend of $0.48.

Bank OZK has increased its dividend by an average of 0.1%annually over the last three years and has increased its dividend annually for the last 29 consecutive years. Bank OZK has a payout ratio of 29.6% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Bank OZK to earn $6.15 per share next year, which means the company should continue to be able to cover its $1.92 annual dividend with an expected future payout ratio of 31.2%.

Bank OZK Price Performance

NASDAQ:OZK opened at $46.34 on Friday. The business's 50-day moving average is $49.54 and its 200 day moving average is $48.88. Bank OZK has a 12 month low of $42.37 and a 12 month high of $53.39. The company has a market capitalization of $5.18 billion, a P/E ratio of 7.66 and a beta of 0.92. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 0.08.

Bank OZK (NASDAQ:OZK - Get Free Report) last released its quarterly earnings results on Tuesday, July 21st. The company reported $1.49 earnings per share for the quarter, beating the consensus estimate of $1.48 by $0.01. Bank OZK had a return on equity of 11.87% and a net margin of 24.95%.The business had revenue of $430.02 million during the quarter, compared to analysts' expectations of $436.42 million. During the same quarter last year, the business posted $1.47 EPS. The firm's revenue for the quarter was up .5% compared to the same quarter last year. On average, equities research analysts forecast that Bank OZK will post 5.82 earnings per share for the current fiscal year.

Bank OZK declared that its board has authorized a share repurchase plan on Monday, June 29th that allows the company to repurchase $200.00 million in shares. This repurchase authorization allows the company to purchase up to 3.4% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's board believes its stock is undervalued.

Bank OZK Company Profile

Bank OZK NASDAQ: OZK is a regional financial institution headquartered in Little Rock, Arkansas. The bank provides banking and financial services to individuals, businesses and institutions through a network of branches and digital banking channels.

Its products and services include checking and savings accounts, certificates of deposit, consumer and commercial loans, residential mortgages, treasury management, online and mobile banking, and wealth management. Bank OZK also provides specialized lending through its Real Estate Specialties Group, which focuses on commercial real estate financing for projects in markets across the United States.

The company traces its origins to 1903, when it was founded as a community bank in Jasper, Arkansas.

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