The Bank of Queensland Ltd (ASX: BOQ) share price is heading south in early Wednesday morning trading.
At the time of writing, the regional bank’s shares are down 1.72% at $7.98.
Why are Bank of Queensland shares falling today?
Typically, one business day before the record date, the ex-dividend date is when investors must have purchased shares. If the investor did not buy Bank of Queensland shares before this date, the dividend will go to the seller.
What does this mean for shareholders?
For those eligible for Bank of Queensland’s interim dividend, shareholders will receive a payment of 22 cents per share on 26 May. The dividend is fully-franked, which means investors can expect to receive tax credits from this.
The latest dividend reflects a 29% increase compared to the prior corresponding period of 17 cents per share.
It is also equally the biggest dividend the bank has paid since the COVID-19 pandemic first wreaked havoc on ASX shares in March 2020.
Investors who elect for the dividend reinvestment plan (DRP) will see a number of shares added to their portfolio. This will be based on a volume-weighted average price from 9 May to 20 May.
The DRP discount rate is set at 2.5% and the last election date for shareholders to opt-in is on 6 May.
Are Bank of Queensland shares a buy now?
A couple of brokers have weighed in on the Bank of Queensland share price following the company’s financial scorecard.
The team at Goldman Sachs cut its 12-month price target by 5.1% to $9.34 for the regional bank’s shares. Its analysts believe that there is still more upside in Bank of Queensland shares in line with its performance recently.
Based on the current share price, this implies an upside of about 17% for investors.
Furthermore, Credit Suisse also slashed its rating on Bank of Queensland shares by 12% to $10.00 a pop. This also implies an upside of around 25% from where the company trades today.
Bank of Queensland share price summary
Bank of Queensland shares have lost 13% on the back of weakened investor sentiment over the past 12 months. In comparison, the S&P/ASX 200 Index (ASX: XJO) has risen by 4% over the same timeframe.
Bank of Queensland shares reached a 52-week high of $9.84 in October, before backtracking amid inflationary movements and the cost of living.
The post Why is the Bank of Queensland share price sliding today? appeared first on The Motley Fool Australia.
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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 Scott Phillips.
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