From 24/7 Wall St. · Chris Lange · · 1m
Bank OZK Dividend Raise and Risks
Bank OZK's 4.3% yield and quarterly dividend raises face construction loan risks.
In brief
Bank OZK's 4.3% yield and quarterly dividend raises face construction loan risks. Bank OZK offers a 4.31% yield with steady quarterly dividends but construction loans pose credit risks for income investors. Originally reported by 24/7 Wall St..
Bank OZK Dividend Raise
Bank OZK raised its quarterly dividend to $0.49 per share, a 2.1% increase from $0.48.
Dividend History Since 2019
Bank OZK has raised dividends every quarter since 2019, increasing from $0.22 to $0.49.
Earnings Cover Dividend
Trailing 12-month EPS is $6.06, with the dividend using 32% of it.
Construction Lending Risk
OZK's construction loans carry risks with $10 billion in repayments over four quarters.
Credit Losses
OZK charged off $22 million on a Seattle office building and has special mention loans.
Management's View
CEO George Gleason says construction loans will drop below 100% regulator guideline by year-end.
What to remember
Bank OZK offers a 4.31% yield with steady quarterly dividends but construction loans pose credit risks for income investors.
