The Bank of Queensland share price has lost 30% in 5 years. Have the dividends been worth it?

a small boy dressed in a bow tie and britches looks up from a pile of books with a book laid in front of him on a desk and an abacus on the other side, as though he is an accountant scouring books of figures.a small boy dressed in a bow tie and britches looks up from a pile of books with a book laid in front of him on a desk and an abacus on the other side, as though he is an accountant scouring books of figures.

The Bank of Queensland Ltd (ASX: BOQ) share price has lost more than 30% over the past five years.

From late 2017, the bank’s shares continued on a slow and gradual decline until the global pandemic hit.

Impacted by the heavy fallout from COVID-19, Bank of Queensland shares dropped to a multi-year low in March 2020.

Since then, the Bank of Queensland share price has recovered to pre-pandemic levels, before giving away its gains over the last six months.

On 27 April 2017, the company’s shares were trading at $11.64 per share. Today, you can pick up the same shares for $7.88, more than 32% cheaper than they were five years ago.

Most people assume the company’s strong bi-annual dividend payout makes up for any potential loss in share price growth.

Further strengthening that argument, the Bank of Queensland board traditionally pays fully-franked dividends.

Franking credits, otherwise known as imputation credits, are highly regarded in the investing world. This is a type of tax credit passed onto shareholders when dividend payments are made by a company. Essentially, the company is paying the tax on the dividends received by the shareholders.

So, have Bank of Queensland shares provided value over the last five years? Below, we take a closer look to see if it has been worth investing in the company’s shares solely for its dividends.

Bank of Queensland’s dividend history

Here’s a list below of the company’s historical dividends paid out to shareholders in the past five years.

  • May 2017 – 38 cents
  • November 2017 – 46 cents
  • May 2018 – 38 cents
  • November 2018 – 38 cents
  • May 2019 – 34 cents
  • November 2019 – 31 cents
  • November 2020 – 12 cents
  • May 2021 – 17 cents
  • November 2021 – 22 cents
  • May 2022 – 22 cents

How much money would an investor make?

For argument’s sake, let’s say an investor bought $10,000 worth of Bank of Queensland shares exactly five years ago. They would have received approximately 859 shares. If we take that figure and multiply it by the current Bank of Queensland share price, the investor’s holding would be worth $6,768.92.

This means that an investor would have made a paper loss of $3,231,08, without factoring in the accumulated dividends since May 2017.

However, when calculating the above dividends, our investor would have gotten a total of $2.98 for every Bank of Queensland share owned. Multiply this by the current holding of 859 shares, this equates to $2,559.82.

Add this to the $6,768.92 that is the present value, and the investors would have a total of $9,328.74.

In essence, this means our investor would be down 6.7% having bought Bank of Queensland shares from April 2017.

Bank of Queensland share price snapshot

Looking at a much shorter time frame, Bank of Queensland shares have lost 14% in the past 12 months.

Year to date, the company’s share price is also in negative territory, down 2%.

Bank of Queensland presides a market capitalisation of roughly $5.08 billion, making it the 98th largest company on the ASX.

The post The Bank of Queensland share price has lost 30% in 5 years. Have the dividends been worth it? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Bank of Queensland right now?

Before you consider Bank of Queensland, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bank of Queensland wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/zbDflaE

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s