MENU

What to expect when the Bank of Queensland Limited releases its results this week

The Bank of Queensland Limited (ASX: BOQ) is expected to announce its first half results for the 2018 financial year on Tuesday 17 April. Here is what you need to look out for when the announcement is made:

Special Dividends.

Top broker Morgans forecast that BOQ could payout special dividends if, as expected, it reports a strong capital position and surplus franking credits. BOQ announced a special dividend of 8 cents per share the last time it released results in October 2017.

Increased investment in digital.

BOQ has a strong customer focused strategy and digital transformation programs are a core part of increasing customer satisfaction. Top brokers Morgans and Morgan Stanley are both expecting investment in this area to keep increasing.

Growth in niche business segments.

With top banks Commonwealth Bank of Australia (ASX: CBA)Westpac Banking Corp (ASX: WBC)Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank Ltd. (ASX: NAB) dominating the market, regional banks such as BOQ have to be innovative and come up with unique strategies to stay relevant.

BOQ has chosen to target niche segments such as agribusinesses, medical professionals and accountants to provide a specialised and more customer tailored service. Given the significant focus on this area, I expect that this segment will continue to grow faster than the rest of the business.

The BOQ share price has been trading at a PE ratio of 12 with a dividend yield of 7%.

I still think the big banks represent better value than BOQ despite their more concentrated focus on the housing market.

While BOQ pays out dividends at an attractive yield, it is not on top of my list of income generating stocks. Top of the list is this elite group of ASX listed companies which have been researched by our team of experts and are expected to raise dividends in 2018.

Breaking news: ASX companies set to raise dividends!

It's been a nail-biter of a reporting season here in the first half of 2018.

But the real action, in my opinion, is what companies are doing with dividends.

What does this mean for you? Well there is one stock I've found that could very well turn out to be THE best buy of 2018. And while there's no such thing as a 'sure thing' when it comes to investing - this ripper might come as close as I've ever seen.

Click here it's FREE!

Motley Fool contributor Kevin Gandiya has no position in any of the stocks mentioned.

You can follow Kevin on Twitter @KevinGandiya.

The Motley Fool Australia owns shares of National Australia Bank Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!