Yahoo Finance Only 4 Days Left Before Bank of Queensland Limited (ASX:BOQ) Will Be Trading Ex-Dividend,
Investors who want to cash in on Bank of Queensland Limited’s (ASX:BOQ) upcoming dividend of AU$0.38 per share have only 4 days left to buy the shares before its ex-dividend date, 24 October 2018, in time for dividends payable on the 14 November 2018. Should you diversify into Bank of Queensland and boost your portfolio income stream? Well, keep on reading because today, I’m going to look at the latest data and analyze the stock and its dividend property in further detail.
Check out our latest analysis for Bank of Queensland
Here’s how I find good dividend stocks
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
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 amount increased over the past?
Does earnings amply cover its dividend payments?
Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How well does Bank of Queensland fit our criteria?
Bank of Queensland has a trailing twelve-month payout ratio of 89%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a payout ratio of 87%, leading to a dividend yield of around 7.4%. Furthermore, EPS should increase to A$0.87.
If you want to dive deeper into the sustainability of a certain payout ratio, you may wish to consider the cash flow of the business. Cash flow is important because companies with strong cash flow can usually sustain higher payout ratios.
Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Investors have seen reductions in the dividend per share in the past, although, it has picked up again.
Compared to its peers, Bank of Queensland generates a yield of 7.2%, which is high for Banks stocks.
Next Steps:
With these dividend metrics in mind, I definitely rank Bank of Queensland as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. There are three fundamental aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for BOQ’s future growth? Take a look at our free research report of analyst consensus for BOQ’s outlook.
Valuation: What is BOQ 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 BOQ 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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
