Why is the Bank of Queensland share price sliding today?

What’s going on with Bank of Queensland shares?

| More on:
Gold piggy bank on top of Australian notes.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Bank of Queensland shares edge 1.72% lower to $7.98 in early trade
  • The company's shares are trading ex-dividend today
  • Eligible shareholders will receive a dividend payment of 22 cents per share on 26 May

The Bank of Queensland Ltd (ASX: BOQ) share price is heading south in early Wednesday morning trading.

At the time of writing, the regional bank’s shares are down 1.72% at $7.98.

Why are Bank of Queensland shares falling today? 

Investors are likely eyeing Bank of Queensland shares as they go ex-dividend today after the company released its half-year results on 14 April.

Typically, one business day before the record date, the ex-dividend date is when investors must have purchased shares. If the investor did not buy Bank of Queensland shares before this date, the dividend will go to the seller.

What does this mean for shareholders?

For those eligible for Bank of Queensland’s interim dividend, shareholders will receive a payment of 22 cents per share on 26 May. The dividend is fully-franked, which means investors can expect to receive tax credits from this.

The latest dividend reflects a 29% increase compared to the prior corresponding period of 17 cents per share.

It is also equally the biggest dividend the bank has paid since the COVID-19 pandemic first wreaked havoc on ASX shares in March 2020.

Investors who elect for the dividend reinvestment plan (DRP) will see a number of shares added to their portfolio. This will be based on a volume-weighted average price from 9 May to 20 May.

The DRP discount rate is set at 2.5% and the last election date for shareholders to opt-in is on 6 May.

Are Bank of Queensland shares a buy now?

A couple of brokers have weighed in on the Bank of Queensland share price following the company’s financial scorecard.

The team at Goldman Sachs cut its 12-month price target by 5.1% to $9.34 for the regional bank’s shares. Its analysts believe that there is still more upside in Bank of Queensland shares in line with its performance recently.

Based on the current share price, this implies an upside of about 17% for investors.

Furthermore, Credit Suisse also slashed its rating on Bank of Queensland shares by 12% to $10.00 a pop. This also implies an upside of around 25% from where the company trades today.

Bank of Queensland share price summary

Bank of Queensland shares have lost 13% on the back of weakened investor sentiment over the past 12 months. In comparison, the S&P/ASX 200 Index (ASX: XJO) has risen by 4% over the same timeframe.

Bank of Queensland shares reached a 52-week high of $9.84 in October, before backtracking amid inflationary movements and the cost of living.

Based on today’s price, Bank of Queensland commands a market capitalisation of roughly $5.11 billion, and has a trailing dividend yield of 4.90%.

Motley Fool contributor Aaron Teboneras 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 Scott Phillips.

More on Bank Shares

Percentage symbol in white with a black rising arrow.
Bank Shares

Could rising rates hurt ASX 200 bank shares in the longer run?

The big banks have been flying high on investor radars since the RBA began ratcheting up interest rates.

Read more »

Woman shaking the hand of a man on a deal.
Bank Shares

Bendigo Bank shares rise after going long on leverage with ANZ lending acquisition

Bendigo and Adelaide Bank has struck a deal with ANZ...

Read more »

A woman sits at her computer with hand to mouth and a contemplative smile on her face although she is considering or thinking about information she is seeing on the screen.
Bank Shares

Why Macquarie shares could be a ‘quality cyclical at a discounted price’: expert

The outlook is bright, one strategist says.

Read more »

Bank building with word Bank on it.
Bank Shares

Why are ASX 200 bank shares responding positively to higher interest rates?

Bank shares have caught a bid today as the RBA continues its tightening policy.

Read more »

Bank Shares

Here’s a look at the Westpac share price’s dismal 2022 financial year

Westpac shares lost 18% of their value in June alone.

Read more »

Young woman using computer laptop with hand on chin thinking about question, pensive expression.
Bank Shares

What happened with the CBA share price in the 2022 financial year? 

Aggressive interest rate rises by the central banks could impact the lucrative mortgage lending sector.

Read more »

A man in a suit looks surprised as he looks through binoculars.
Bank Shares

What’s going on with ASX 200 bank shares on Tuesday?

The RBA's latest rate hike seems to have boosted most ASX 200 bank stocks.

Read more »

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Bank Shares

How did the Macquarie share price perform in June?

We check how June played out for the investment bank.

Read more »