Latest news with #BankofQueenslandLimited
Yahoo
25-04-2025
- Business
- Yahoo
Dividend Investors: Don't Be Too Quick To Buy Bank of Queensland Limited (ASX:BOQ) For Its Upcoming Dividend
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Bank of Queensland Limited (ASX:BOQ) is about to go ex-dividend in just 4 days. The ex-dividend date is commonly two business days before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Meaning, you will need to purchase Bank of Queensland's shares before the 30th of April to receive the dividend, which will be paid on the 23rd of May. The company's next dividend payment will be AU$0.18 per share. Last year, in total, the company distributed AU$0.34 to shareholders. Based on the last year's worth of payments, Bank of Queensland stock has a trailing yield of around 4.6% on the current share price of AU$7.39. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. We need to see whether the dividend is covered by earnings and if it's growing. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. It paid out 76% of its earnings as dividends last year, which is not unreasonable, but limits reinvestment in the business and leaves the dividend vulnerable to a business downturn. It could become a concern if earnings started to decline. When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn. View our latest analysis for Bank of Queensland Click here to see the company's payout ratio, plus analyst estimates of its future dividends. When earnings decline, dividend companies become much harder to analyse and own safely. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. Readers will understand then, why we're concerned to see Bank of Queensland's earnings per share have dropped 9.0% a year over the past five years. Such a sharp decline casts doubt on the future sustainability of the dividend. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Bank of Queensland has seen its dividend decline 6.7% per annum on average over the past 10 years, which is not great to see. It's never nice to see earnings and dividends falling, but at least management has cut the dividend rather than potentially risk the company's health in an attempt to maintain it. Is Bank of Queensland worth buying for its dividend? Earnings per share have been declining and the company is paying out more than half its profits to shareholders; not an enticing combination. These characteristics don't generally lead to outstanding dividend performance, and investors may not be happy with the results of owning this stock for its dividend. With that being said, if you're still considering Bank of Queensland as an investment, you'll find it beneficial to know what risks this stock is facing. Every company has risks, and we've spotted 1 warning sign for Bank of Queensland you should know about. Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Business Insider
22-04-2025
- Business
- Business Insider
Analysts Have Conflicting Sentiments on These Financial Companies: Bank of Queensland Limited (OtherBKQNF) and Challenger Limited (OtherCFIGF)
Analysts have been eager to weigh in on the Financial sector with new ratings on Bank of Queensland Limited (BKQNF – Research Report) and Challenger Limited (CFIGF – Research Report). Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. Bank of Queensland Limited (BKQNF) Citi analyst Thomas Strong maintained a Sell rating on Bank of Queensland Limited today and set a price target of A$6.00. The company's shares closed last Thursday at $4.14, equals to its 52-week high of $4.14. According to Strong is ranked #7299 out of 9437 analysts. Currently, the analyst consensus on Bank of Queensland Limited is a Moderate Sell with an average price target of $4.01, representing a -3.0% downside. In a report issued on April 11, Morgan Stanley also maintained a Sell rating on the stock with a A$6.20 price target. Challenger Limited (CFIGF) Morgans analyst Richard Coles maintained a Buy rating on Challenger Limited today and set a price target of A$7.51. The company's shares closed last Thursday at $3.05, equals to its 52-week low of $3.05. According to Coles is a 4-star analyst with an average return of 8.2% and a 51.3% success rate. Coles covers the Financial sector, focusing on stocks such as Insurance Australia Group Limited, QBE Insurance Group Limited, and Macquarie Group Limited. The word on The Street in general, suggests a Strong Buy analyst consensus rating for Challenger Limited with a $4.46 average price target, a 46.2% upside from current levels. In a report issued on April 7, Citi also maintained a Buy rating on the stock with a A$6.70 price target.
