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Bank OZK (OZK) Dividend Hike: Assessing the Bank’s Valuation After 62 Straight Quarters of Growth

Simply Wall St · 6d ago

Bank OZK (OZK) just extended its dividend growth streak to a 62nd straight quarter, lifting the quarterly payout on common stock to $0.46 per share and reinforcing its spot in the S&P High Yield Dividend Aristocrats index.

See our latest analysis for Bank OZK.

That latest dividend bump lands as the share price trades around $47.04, with a weaker 90 day share price return of about negative 9 percent but a solid 5 year total shareholder return above 65 percent, suggesting long term momentum remains intact despite recent volatility.

If Bank OZK’s steady dividend story has your attention, this could be a good moment to explore other quality names using solid balance sheet and fundamentals stocks screener (None results).

With shares roughly 18 percent below the average analyst target and an intrinsic value gap that looks even wider, is Bank OZK quietly offering value, or is the market correctly pricing in its future growth already?

Most Popular Narrative Narrative: 14.1% Undervalued

With the narrative fair value sitting meaningfully above the last close of $47.04, the valuation hinges on how earnings and margins evolve over the next several years.

The accelerated buildout of the Corporate & Institutional Banking (CIB) division, including its expansion into new verticals, geographies (Atlanta, Nashville), and fee generating businesses, is set to increase both lending related fee income and relationship driven deposit growth. This is expected to support higher non interest revenue and improve net margins.

Read the complete narrative.

Curious how modest top line expansion, shifting margins and a slightly richer future earnings multiple still add up to a higher fair value? The full narrative reveals the exact growth runway, profitability mix, and valuation bridge that underpin this upside case.

Result: Fair Value of $54.78 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, elevated RESG repayments and Bank OZK’s heavy commercial real estate exposure could compress earnings and delay the multiple expansion implied in this upside case.

Find out about the key risks to this Bank OZK narrative.

Build Your Own Bank OZK Narrative

If you see the story differently or prefer your own deep dive into the numbers, you can build a custom view in minutes with Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Bank OZK.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.