It has been another fairly quiet session for Bank of Queensland Ltd (ASX: BOQ) shares on Wednesday.
The bank's share price is down 1.28% to $6.575 in midday trade, continuing its somewhat lacklustre performance over the past year.
Back on 9 June, BOQ shares fell to a 52-week low of $5.91. They've since recovered around 11%, although the stock remains well below its 52-week high of $7.48.
But with shares still well below their highs, are they worth buying today?
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The dividend looks pretty attractive
One thing likely drawing interest from income investors is BOQ's dividend yield.
The bank paid 55 cents per share in fully franked dividends over the past 12 months.
At today's share price, that translates to a trailing yield of approximately 8.37%.
However, there's something worth keeping in mind.
That figure includes the 15-cent special dividend paid in August. Excluding this one-off payment, the ordinary dividends total 40 cents, giving a yield closer to 6.1%.
Still, that's a decent return for shareholders.
The bank also announced a $295 million capital return last month. This consists of the special dividend and an on-market share buyback of up to $196 million.
But what about the underlying business?
This is where I'd be paying closer attention.
BOQ's half-year results showed cash earnings fell 4% to $176 million, while statutory net profit dropped 20% to $136 million.
Operating expenses also increased 6% to $553 million.
There were some positives, though.
Its net interest margin (NIM) improved to 1.67%, compared with 1.57% a year earlier, while commercial lending balances increased 16%.
More recently, BOQ completed the migration of approximately 350,000 ME customers onto its digital banking platform.
However, the bank also flagged a $47 million pre-tax impairment charge relating to technology and other assets, which will affect its FY26 statutory results.
Are BOQ shares good value?
Analysts appear fairly divided on where BOQ shares could be heading next.
TipRanks puts the average 12-month price target from 8 analysts at $6.20, suggesting around 5.7% downside from today's price.
Morningstar, on the other hand, has a fair value estimate of $7.305, suggesting approximately 11% upside. However, it also rates its valuation as highly uncertain.
Personally, I can see the appeal of the dividend, but I'm not convinced BOQ is an obvious bargain at $6.58.
I'd like to see more improvement in earnings before considering buying shares.
BOQ is scheduled to release its FY26 results on 15 October, which should give us a better idea of how the turnaround is progressing.
