Insights into BOK Financial Corp's Upcoming Dividend Payment and Historical Performance
BOK Financial Corp(NASDAQ:BOKF) recently announced a dividend of $0.55 per share, payable on 2024-02-28, with the ex-dividend date set for 2024-02-13. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into BOK Financial Corps dividend performance and assess its sustainability.
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BOK Financial Corp is the largest financial institution in Oklahoma and it provides a comprehensive range of nationally competitive financial products and services. Its operating segments consist of commercial banking, consumer banking, wealth management, and Funds Management and Other. The company has various products and services including cash management services, loans and deposits, fiduciary and insurance services, mortgage banking and brokerage and trading services. It generates maximum revenue from the commercial banking segment. Its commercial banking segment includes lending, treasury and cash management services, and customer risk management products to small businesses, middle market, and larger commercial customers.
BOK Financial Corp's Dividend Analysis
A Glimpse at BOK Financial Corp's Dividend History
BOK Financial Corp has maintained a consistent dividend payment record since 2005. Dividends are currently distributed on a quarterly basis.
BOK Financial Corp has increased its dividend each year since 2005. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 19 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down BOK Financial Corp's Dividend Yield and Growth
As of today, BOK Financial Corp currently has a 12-month trailing dividend yield of 2.62% and a 12-month forward dividend yield of 2.65%. This suggests an expectation of increase dividend payments over the next 12 months.
Over the past three years, BOK Financial Corp's annual dividend growth rate was 2.00%. Extended to a five-year horizon, this rate increased to 3.60% per year. And over the past decade, BOK Financial Corp's annual dividends per share growth rate stands at 3.90%.
Based on BOK Financial Corp's dividend yield and five-year growth rate, the 5-year yield on cost of BOK Financial Corp stock as of today is approximately 3.14%.
BOK Financial Corp's Dividend Analysis
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, BOK Financial Corp's dividend payout ratio is 0.27.
BOK Financial Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks BOK Financial Corp's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. BOK Financial Corp's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and BOK Financial Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. BOK Financial Corp's revenue has increased by approximately 3.10% per year on average, a rate that underperforms than approximately 70.84% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, BOK Financial Corp's earnings increased by approximately 2.80% per year on average, a rate that underperforms than approximately 69.81% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 8.20%, which underperforms than approximately 50.13% of global competitors.
Next Steps
In conclusion, BOK Financial Corp's consistent dividend payment history, coupled with a moderate dividend yield and a steady growth rate, presents an appealing case for income-focused investors. The company's prudent payout ratio and fair profitability rank underscore the sustainability of its dividends. However, investors should also consider the growth metrics, which suggest a need for improvement in revenue and earnings growth relative to global competitors. As the financial landscape evolves, BOK Financial Corp will need to navigate these challenges to maintain its reputation as a reliable dividend payer.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
