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Bank OZK (OZK) Stock Up 1.6% on Dividend Hike Announcement
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Bank OZK’s (OZK - Free Report) shares were up 1.6% in after-hours trading following the announcement of a quarterly dividend hike. The company declared a cash dividend of 31 cents per share, marking a 3.3% increase from the prior payout. The dividend will be paid out on Apr 22 to shareholders of record on Apr 15.
This represents the 47th consecutive quarter of dividend hike by Bank OZK. Prior to this, OZK hiked its dividend by 3.4% to 30 cents per share this January. We believe that such disbursements highlight the company’s operational strength and commitment to enhance shareholder wealth.
Considering the last day’s closing price of $42.10, Bank OZK’s dividend yield currently stands at 2.95%. The yield is also significantly impressive compared with the industry average of 2.09%. Not only is the yield attractive for income investors, but also it represents a steady income stream.
Apart from regular dividend increases, OZK has a share repurchase program in place. In July 2021, the company announced a share repurchase program worth up to $300 million through Jul 1, 2022. Later in October, it increased the authorization, which now totals $650 million and will expire on Nov 4, 2022. As of Dec 31, 2021, nearly $456 million worth of shares were left to be repurchased.
As of Dec 31, 2021, Bank OZK had total debt worth $1.22 billion and cash and cash equivalents of $2.05 billion. Thus, given a robust liquidity position and decent earnings strength, the company is expected to continue with efficient capital deployment activities. By carrying out the same, it will keep enhancing shareholder value.
Over the past year, shares of OZK have gained 3.1% compared with an 8% rally of the industry it belongs to.
Over the past few months, several banks have rewarded their shareholders with dividend hikes. Some of these include BankUnited, Inc. (BKU - Free Report) and Glacier Bancorp, Inc. (GBCI - Free Report) .
BankUnited declared a quarterly cash dividend of 25 cents per share, marking a 9% increase from the prior payout. The dividend will be paid out on Apr 29 to shareholders of record on Apr 14.
Prior to this, BKU announced a 10% dividend hike in February 2020. This marked the first time that the company announced an increase in its quarterly dividend. Before that, the bank used to pay 21 cents per share as quarterly dividend.
Glacier Bancorp declared a quarterly dividend of 33 cents per share, representing a 3.1% hike from the prior payout. The dividend will be paid out on Apr 21 to its stockholders of record as of Apr 12, 2022.
This marks the company’s 148th consecutive quarterly dividend. GBCI has increased its dividend 49 times.
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Bank OZK (OZK) Stock Up 1.6% on Dividend Hike Announcement
Bank OZK’s (OZK - Free Report) shares were up 1.6% in after-hours trading following the announcement of a quarterly dividend hike. The company declared a cash dividend of 31 cents per share, marking a 3.3% increase from the prior payout. The dividend will be paid out on Apr 22 to shareholders of record on Apr 15.
This represents the 47th consecutive quarter of dividend hike by Bank OZK. Prior to this, OZK hiked its dividend by 3.4% to 30 cents per share this January. We believe that such disbursements highlight the company’s operational strength and commitment to enhance shareholder wealth.
Considering the last day’s closing price of $42.10, Bank OZK’s dividend yield currently stands at 2.95%. The yield is also significantly impressive compared with the industry average of 2.09%. Not only is the yield attractive for income investors, but also it represents a steady income stream.
Apart from regular dividend increases, OZK has a share repurchase program in place. In July 2021, the company announced a share repurchase program worth up to $300 million through Jul 1, 2022. Later in October, it increased the authorization, which now totals $650 million and will expire on Nov 4, 2022. As of Dec 31, 2021, nearly $456 million worth of shares were left to be repurchased.
As of Dec 31, 2021, Bank OZK had total debt worth $1.22 billion and cash and cash equivalents of $2.05 billion. Thus, given a robust liquidity position and decent earnings strength, the company is expected to continue with efficient capital deployment activities. By carrying out the same, it will keep enhancing shareholder value.
Over the past year, shares of OZK have gained 3.1% compared with an 8% rally of the industry it belongs to.
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 Banks Taking Similar Steps
Over the past few months, several banks have rewarded their shareholders with dividend hikes. Some of these include BankUnited, Inc. (BKU - Free Report) and Glacier Bancorp, Inc. (GBCI - Free Report) .
BankUnited declared a quarterly cash dividend of 25 cents per share, marking a 9% increase from the prior payout. The dividend will be paid out on Apr 29 to shareholders of record on Apr 14.
Prior to this, BKU announced a 10% dividend hike in February 2020. This marked the first time that the company announced an increase in its quarterly dividend. Before that, the bank used to pay 21 cents per share as quarterly dividend.
Glacier Bancorp declared a quarterly dividend of 33 cents per share, representing a 3.1% hike from the prior payout. The dividend will be paid out on Apr 21 to its stockholders of record as of Apr 12, 2022.
This marks the company’s 148th consecutive quarterly dividend. GBCI has increased its dividend 49 times.