The Bank of Queensland (ASX:BOQ) share price is now trading on a forecast 4.4% fully franked dividend yield

This bank’s shares could offer a generous yield…

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The Bank of Queensland Limited (ASX: BOQ) share price has been an impressive performer in 2021.

Since the start of the year, the regional bank’s shares have risen 22%.

This is almost double the return of the S&P/ASX 200 Index (ASX: XJO) over the same period.

Why is the Bank of Queensland share price charging higher this year?

Investors have been bidding the Bank of Queensland share price higher this year thanks to its return to form in FY 2021 and the acquisition of ME Bank for $1.3 billion.

In respect to the former, during the first half of FY 2021, the company reported a 9% increase in cash earnings to $165 million and a 66% lift in statutory net profit after tax to $154 million.

This ultimately underpinned a sizeable 54% increase in the Bank of Queensland interim dividend to 17 cents per share, fully franked.

Is it too late to invest?

The good news is that the team at Credit Suisse still see a lot of value in the Bank of Queensland share price. They are also expecting the Bank of Queensland dividend to provide investors with an attractive yield in FY 2021.

According to the note, the broker has an outperform rating and $11.50 price target on the company’s shares.

Based on the latest Bank of Queensland share price of $9.18, this implies potential upside of 25% over the next 12 months before dividends.

What about the Bank of Queensland dividend?

If you include the forecast Bank of Queensland dividend, this potential return becomes even more attractive.

Credit Suisse is expecting a fully franked final dividend of 22 cents per share. This will bring its full year dividend to 40 cents per share. Based on this forecast and its current share price, its shares will provide investors with a fully franked 4.4% yield.

But it doesn’t stop there. Positively, another increase to 42 cents per share is being forecast by Credit Suisse in FY 2022.

All in all, this could make the Bank of Queensland dividend a top option for income investors right now.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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