Do Bank of Queensland shares really offer a dividend yield above 6%?

The $4.5 billion bank’s dividend yield surpasses those offered by most of its fellow ASX 200 banks.

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Key points

  • Bank of Queensland has paid out 44 cents of dividends over the last 12 months 
  • That has left the ASX 200 bank stock trading with a 6.35% dividend yield 
  • That's only slightly lower than the best dividend yield currently on offer among ASX 200 banking giants 

The Bank of Queensland Limited (ASX: BOQ) share price has had a rough couple of weeks.

It’s slipped 7.7% since the end of May – a similar performance to that of the S&P/ASX 200 Index (ASX: XJO).

At the time of writing, the Bank of Queensland share price is $6.93. That leaves the approximately $4.5 billion ASX 200 bank trading with a dividend yield of more than 6%.

Let’s take a closer look at the notable dividend ratio offered by Bank of Queensland.

Bank of Queensland shares offer a 6.3% dividend yield

Have you been invested in Bank of Queensland shares for the last 12 months? You’ve likely received 44 cents in dividends for each stock held over that time.

That figure encompasses a 22-cent final dividend for financial year 2021, paid in November. A 22-cent interim dividend, paid in May, topped it off.

Considering the current Bank of Queensland share price, that leaves the stock boasting a dividend yield of approximately 6.35%. Not too shabby.

Additionally, Bank of Queensland pays out fully franked dividends. That could make its yield even more attractive to some shareholders as franked dividends can provide benefits at tax time.

On top of that, the ASX 200 bank offers a dividend reinvestment plan (DRP). That allows shareholders to receive their payout in the form of new shares in the bank, thereby increasing their holding without paying brokerage, commission, or stamp duty fees.

The 6.35% dividend yield offered by Bank of Queensland shares is one of the highest among ASX 200 bank stocks.

Though, it’s bested by Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares’ current 6.38% dividend yield.

Meanwhile, Bendigo and Adelaide Bank Ltd (ASX: BEN) and Westpac Banking Corp (ASX: WBC) are trading with respective dividend yields of 5.74% and 6.07%.

Motley Fool contributor Brooke Cooper 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 positions in and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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