Among the popular Australian stocks for dividend-seeking investors, the Bank of Queensland (AU:BOQ) offers an attractive dividend yield of 7.07%, much higher than the sector average of 2.1%. BOQ provides a wide range of retail and commercial banking, insurance, and wealth management services, catering to both individual and commercial clients.
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In terms of share price, the performance has been volatile recently, resulting in a loss of over 11% in the past 12 months. Currently, analysts hold a cautious view of the stock and expect further downside due to industry-wide challenges.
Here, we used TipRanks’ Top Australian Dividend Stocks tool to select this stock. This tool facilitates screening stocks from specific markets and analyzing them across multiple parameters. It is available across 10 different markets on TipRanks.
BOQ’s Dividend History
In 2023, BOQ paid AU$285 million in dividends to its shareholders. The total dividend of AU$0.41 per share in 2023 was down by 11% from the previous year. This was mainly attributed to the decline in the company’s annual profits, hit by margin pressures in the industry and increased competition in lending and deposits. In its 2023 annual reports, the company reported that its statutory profit dropped by 70% to AU$124 million in 2023, while cash earnings fell by 8% compared to the previous year.
Nonetheless, the Bank of Queensland maintained a cash dividend payout ratio of 60% in 2023, implying that its dividends are based on a stable foundation.
The bank acknowledged the challenges it faced during the year, which were reflected in its shareholder returns. However, it is now focused on improving its return on equity, backed by its transformation plan, budget maintenance, and enhanced customer experience.
Is BOQ a Good Share to Buy?
According to TipRanks’ rating consensus, BOQ stock has a Moderate Sell rating based on a total of seven recommendations. This includes two Buy and five Sell ratings. The BOQ share price target is AU$5.64, which is almost 8% below the current price level.
