The Bank of Queensland Ltd (ASX: BOQ) share price is lifting on Thursday despite the company slashing its interim dividend amid a brutal hit to its bottom line.

The S&P/ASX 200 Index (ASX: XJO) bank dropped its first-half earnings this morning, as The Motley Fool Australia reported earlier.

Within the release, it revealed a 20 cents per share, fully franked interim dividend – a 9% drop on that of the prior comparable period.

Right now, Bank of Queensland shares are trading 2.38% higher than their previous close at $6.44 apiece. At the same time, the ASX 200 is down 0.07%.

So, without further ado, let’s delve into the nitty-gritty details of the Bank of Queensland’s upcoming dividend.

All you need to know about Bank of Queensland’s latest dividend

Attentive owners of Bank of Queensland shares are probably unsurprised by the company’s reduced interim dividend. The bank warned it would likely be slashed last week.

It updated the market on two one-off non-cash items set to dint its bottom line last Friday – a $60 million provision for its integrated risk program and a $200 million write-down of goodwill.

As a result, the bank’s statutory net profit after tax (NPAT) for the first half of financial year 2023 plummeted 98% to $4 million.

That considered, shareholders might be relieved the interim dividend got away with a 9% haircut.

The 20 cents per share dividend represents 51% of the bank’s cash earnings for the period. They came to $256 million after tax.

Though, adjusting for the $60 million provision, the payout ratio sits within its 60% to 75% target range – just – coming in at 61%.

Key dates

Anyone holding Bank of Queensland shares when the market closes on 9 May will receive the 20 cents per share offering.

The stock will trade ex-dividend the following day.

Investors will then have to wait until 1 June to see their dividends.

Those who want to receive their dividends in the form of new shares have until 12 May to opt into the bank’s dividend reinvestment plan (DRP). The plan will offer stock at a 1.5% discount to the 10-day daily volume weighted average price from 1 May.

Bank of Queensland shares still offer a healthy 6.9% dividend yield, considering the 20 cents per share offering announced today and its previous 24-cent final dividend, paid in November.

Bank of Queensland share price snapshot

Today’s gain hasn’t proven enough to boost the Bank of Queensland share price back into the longer-term green.

The stock has fallen 6% so far this year. It’s also 20% lower than it was this time last year.

For comparison, the ASX 200 has gained 6% year to date. Though, it has fallen 3% over the last 12 months.

The post Everything you need to know about the latest Bank of Queensland dividend appeared first on The Motley Fool Australia.

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More reading

• Bank of Queensland share price lifts despite plunging profits
• The ASX shares that could win in the long term
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Brooke Cooper 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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