Bank of Queensland Ltd (ASX: BOQ) shareholders might be feeling frustrated after the bank's share price has seesawed in recent times.
The regional bank released its half-year results for the 2022 financial year, reporting single-digit increases across its top line metrics.
The board opted to significantly ramp up its upcoming interim dividend to eligible investors.
Let's take a look below at what you need to know about the latest dividend.
What's the deal with the Bank of Queensland interim dividend?
The Bank of Queensland share price backtracked as investors vented their disappointment following the release of the bank's financial scorecard.
The company is set to pay out 22 cents per share for the six months ending 28 February 2022. That's 29% higher than last year's interim dividend of 17 cents per share for first half of FY21.
Furthermore, the payout ratio for the latest dividend is at 53% (in line with the target range of 60%-75% of cash earnings).
Management, however, noted there may still be uncertainty associated with COVID-19 over the next year. Nonetheless, while maintaining a prudent approach to provisioning, the bank expects CET1 [Common Equity Tier 1] to remain above 9.5%.
The higher dividend came despite the company recording a slight fall of net profit after tax (NPAT) to $212 million. In the previous period (H2 FY21), the group achieved NPAT of $215 million.
When can shareholders expect to be paid?
Bank of Queensland will pay the interim dividend to eligible shareholders on 26 May.
However, to be eligible you'll need to own Bank of Queensland shares before the ex-dividend date which falls on Wednesday 4 May. This means if you want to secure the dividend, you will need to purchase the company's shares by tomorrow, Tuesday 3 May at the latest.
It is worth noting that on the ex-dividend day, the share price traditionally falls in proportion to the dividend amount.
In addition, the dividend is fully franked which means that investors will receive tax credits when tax time comes along.
Currently, Bank of Queensland has a dividend trailing yield of 4.90% and a market capitalisation of roughly $5.09 billion.
