Bank of Queensland Limited (ASX: BOQ) may not be a member of the ASX big four banks. That honour is still reserved for the likes of Commonwealth Bank of Australia (ASX: CBA). But Bank of Queensland shares are still ASX banking shares – a corner of the ASX from which investors typically expect big dividends.
So is this the case with the Bank of Queensland? Does this ASX bank square its dividend bite with the bark of income investors?
Well, the answer is yes. Bank of Queensland shares do currently pay a dividend. In fact, this ASX bank share has been a fairly consistent dividend payer over the past ten years. It did miss a dividend in 2020 as a result of the emergence of the pandemic. But that is nothing unique in the banking space –Westpac Banking Corp (ASX: WBC) also skipped a 2020 dividend.
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How do Bank of Queensland shares stack up with dividends?
But last year saw Bank of Queensland dividends come roaring back. It ended up giving investors an annual total of 21 cents per share in dividends last year. Last week, Bank of Queensland actually traded ex-dividend for its upcoming interim dividend. This investors will receive on 26 May. It is to be a fully franked payment of 22 cents per share, a nice increase on last year's interim dividend of 17 cents.
Together with Bank of Queensland's final dividend last year, this will give the bank a forward dividend yield of 5.8% on current pricing. With the full franking credits, this already solid yield grosses up to 8.29%.
That happens to be above the dividend yields of all four of the major banks right now.
However, the Bank of Queensland share price hasn't exactly been too kind to investors in recent years. Over the past five years, shareholders are still underwater by almost 35%. Indeed, back in 2010, Bank of Queensland shares were going for over $11. Today, they are priced at $7.58 at the present time.
At this current Bank of Queensland share price, it has a market capitalisation of $4.87 billion.
