Bank of Queensland Ltd (ASX: BOQ) shares closed flat yesterday. At the closing bell on Thursday, shares in the S&P/ASX 200 Index (ASX: XJO) bank stock were trading for $5.95 apiece.
While that sees the bank's share price up 8.38% so far in July, shares remain down 19.8% since this time last year.
Of course, the above price chart doesn't take into account the 44 cents per share in fully franked dividends the stock has delivered over the past 12 months.
If we add those back in, the accumulated value of Bank of Queensland shares is down a lesser 14% over the full year.
Which brings us back to our headline question.
Are Bank of Queensland shares a buy for the forecast dividend yield?
A number of leading brokers have come out with positive forecasts for the dividends investors might expect from Bank of Queensland in FY 2024, and beyond.
Goldman Sachs, for example, is forecasting fully franked dividend yields of more than 7% through to FY 2025.
And CommSec expects Bank of Queensland shares to deliver full FY 2024 dividends of 42 cents apiece. That's the broker's highest yield forecast for any of the ASX 200 bank stocks.
At yesterday's closing share price, this equates to a forecast yield of 7.3%, with potential tax benefits from those franking credits.
That's certainly a juicy yield. And it makes this ASX 200 bank stock worth our consideration.
Of course, we want to avoid investing in companies that are likely to fall in value, potentially negating any gains we might make from their dividends. Or more.
With that in mind, we turn back to the analysts at Goldman Sachs.
Although the broker has a 'neutral' rating on the stock, its analysts have a $6.20 price target on Bank of Queensland shares. That implies a potential upside of more than 4% from current levels.
If we add in the 42 cents per share in forecast dividends CommSec expects, the potential accumulated gains by the end of FY 2024 are just under 12%.
