Bank of Queensland has long been one of the highest yielding dividend payers on the ASX. The group currently pays a grossed up 4.46% yield, but is this sustainable? we have put together the BOQ Dividend Report.

BOQ Dividend Summary

The Bank of Queensland announced with their H121 results to the market a declaration of a $0.17 per share net dividend, this equates to a 3.13% yield at the current share price.

BOQ Dividend Latest Information
BOQ Dividend Latest Information
DPS(TTM)$0.29
Gross DPS(TTM)$0.4143
Dividend yield3.13%
Gross yield4.46%
Payout Ratio0%
DRPYes
DRP Features1.5% discount
BOQ Dividend Summary

BOQ Dividend Dates 2021

The Bank of Queensland has announced their latest dividend to be $0.17 per share representing a yield of ~3.1% to shareholders.

TypeFinalInterim
Amount$0.12$0.17
Results Reporting13 Oct 202115 Apr 2021
Ex-div date28 Oct 202105 May 2021
Record Date29 Oct 202106 May 2021
Pay date18 Nov 202126 May 2021
BOQ Dividend Dates 2021

BOQ Dividend History Graph

Bank of Queensland has typically paid a dividend each year since 2010. However, the group temporarily paused their dividend payments during the COVID-19 pandemic.

BOQ typically announces a dividend with the release of its half-year results in Apr and full-year results in October as seen in their financial calendar. BOQ Dividends are typically paid twice a year, in July (interim dividend) and November (final dividend).

BOQ Dividend History
BOQ Dividend History

Over the past decade, big banking stocks have managed to maintain a steady flow of income for investors, with an exception of the COVID dip.

BOQ Dividend Yield Comparison

BOQ’s current gross dividend yield is 4.16%. This is about on par with the other four big banks (CBAWBC, NAB). ANZ currently has the highest yield amongst the big four banks listed on the ASX.

BOQ Dividend Yield Comparison
BOQ Dividend Yield Comparison

The current BOQ yield of 4.16% far exceeds the Average Term Deposit rate of 0.4%

Net BOQ Dividend Yields Over Time

The average dividend yield in the last 5 years is 6.41%. From this, we can see BOQ’s current net yield of 3.13% is below its historic average. The BOQ dividend current payout ratio is 66.0%

BOQ Dividend Per Ordinary Share Since 1H19

The bank’s dividend is still reduced from FY19 where they paid out $0.65 per share to investors. The group 1H20 dividend was deferred due to the uncertainties around the COVID pandemic.

“Banks should seriously consider deferring decisions on the appropriate level of dividends until the outlook is clearer”

APRA

However, it appears that the group is now in a position to continue to pay out a dividend in line with their payout policy once again.

BOQ Dividend Report Payout Ratio and Policy

The current BOQ dividend payout ratio is 66%, which is at the middle range of the bank’s intended payout ratio to shareholders.

BOQ Dividend Payout Ratio's
BOQ Dividend Payout Ratio’s

BOQ in their 1H21 report to the market mentions that the group remain committed to sustainable profitable growth, supporting returns to shareholders and a dividend payout ratio target range of 60 – 75% of cash earnings.

When will my BOQ Dividends be Paid?

The Bank typically announces a dividend with the release of its half-year results in Apr and full-year results in October. 

BOQ Typical Dividend Payment Dates
BOQ Typical Dividend Payment Dates

Dividends are typically paid twice a year, in May (interim dividend) and November (final dividend).  Payment dates are listed on the bank’s financial calendar

The Return of Bank Dividends

Following the loss of earnings, we saw companies cut dividends across the board, leading to a massive reduction in the average dividend yield across the market. Now averaging below 4%. We saw the 4 big banks, which are known as massive dividend stocks, cut their yield by around 50% in 2020.

We saw the big four banks, cut dividends by around 50% in 2020

Following the return of earnings, we are expecting to see dividends returning to very attractive yields. Though we can’t expect past payout ratios, as many companies will elect to hold a large amount of cash on hand to strengthen their balance sheet against future uncertainties.

In 2021 we are expecting to see the big banks return more than $30 Billion to shareholders.

Across the market, we are expecting to see payout ratios increase by more than 10%. Which will have a big impact on the average yield rate. We are expecting to see the big banks return more than $30 Billion to shareholders.

BOQ Dividend Reinvestment Plan (DRIP)

A DRIP or dividend reinvestment plan allows investors to automatically reinvest their dividends for additional shares in the company. Using this method, the investor will still receive the franking credit and will still be taxed on the cash value of their dividend. 

The simplest way to elect to participate in a company’s DRIP is through the related share registry (i.e. Computershare or Link Market Services).

BOQ Dividend Reinvestment Plan Summery
BOQ Dividend Reinvestment Plan Summary
  • In Computershare it’s as simple as going ‘my profile’- ‘Reinvestment plans’ and selecting the company and electing to participate in full or partially. That is either the entire amount or a partial amount of your dividend is reinvested.
  • On Link you simply click view details of the company of interest and update it in the ‘payments and tax’ section.

For more information check out our ASX DRIP VS NON-DRIP Guide and BOQ’s specific dividend page.

BOQ Dividend History

Ex-DateAmountFrankingGrossTypePayable
05/05/2021$0.17100%$0.2429Interim26/05/2021
04/11/2020$0.12100%$0.1714Final25/11/2020
06/11/2019$0.31100%$0.4429Final27/11/2019
01/05/2019$0.34100%$0.4857Interim22/05/2019
24/10/2018$0.38100%$0.5429Final14/11/2018
26/04/2018$0.38100%$0.5429Interim17/05/2018
02/11/2017$0.46100%$0.6571Final23/11/2017
20/04/2017$0.38100%$0.5429Interim17/05/2017
27/10/2016$0.38100%$0.5429Final22/11/2016
28/04/2016$0.38100%$0.5429Interim19/05/2016
29/10/2015$0.38100%$0.5429Final24/11/2015
16/04/2015$0.36100%$0.5143Interim12/05/2015
03/11/2014$0.34100%$0.4857Final27/11/2014
24/04/2014$0.32100%$0.4571Interim23/05/2014
07/11/2013$0.30100%$0.4286Final04/12/2013
02/05/2013$0.28100%$0.40Interim27/05/2013
15/11/2012$0.26100%$0.3714Final10/12/2012
02/05/2012$0.26100%$0.3714Interim25/05/2012
09/11/2011$0.28100%$0.40Final02/12/2011
03/05/2011$0.26100%$0.3714Interim25/05/2011
12/11/2010$0.26100%$0.3714Final02/12/2010
28/04/2010$0.26100%$0.3714Interim18/05/2010
13/11/2009$0.26100%$0.3714Final01/12/2009
29/04/2009$0.26100%$0.3714Interim19/05/2009
BOQ History
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