Owning Bank of Queensland Ltd (ASX: BOQ) shares today is expected to translate into a sizeable dividend payment in the coming years following the ASX bank share‘s release of its FY26 result.
The company revealed that statutory net profit after tax (NPAT) soared 88% to $250 million, though cash earnings after tax fell 7% to $358 million.
While commercial lending grew 16%, or $2 billion, home lending declined 8% to $4.6 billion, so there was a net reduction of lending between those two areas. The net interest margin (NIM) improved 6 basis points to 1.70% despite competition.
The bank’s annual cash earnings per share (EPS) was 54.4 cents (down 7%), which is a key figure that shows how easily (or not) it can fund the dividend.
BOQ dividend declared
The board of directors of the ASX bank share decided to declare a FY26 second-half dividend of 20 cents.
At the time of writing, this payout alone translates into a dividend yield of approximately 3% excluding franking credits and 4.2% including franking credits. In other words, it’s a sizeable payout.
The FY26 second-half payout represents a dividend payout ratio of 72.9% of reported second-half cash earnings, excluding notable items.
This upcoming payout is in addition to the FY26 first-half dividend and the special dividend that have already been paid.
When will the passive income be paid?
Before we get to the payment date of the BOQ dividend, we should look at the ex-dividend date.
The ex-dividend date tells investors the cut-off date for eligibility for the dividend payment. Investors need to own shares before the ex-dividend date, so that means they have until the end of trading on the previous trading day to be entitled to the upcoming payment. If the ex-dividend date is a Monday, they’ll need to own shares on Friday to be entitled to the payout.
For the FY26 second-half dividend, the ex-dividend date is Tuesday, 27 October 2026. That’s less than two weeks away!
After that, the payment date is 19 November 2026, so investors only have to wait just over a month until they receive this payout.
Owners of Bank of Queensland shares can also decide to take part in the dividend re-investment plan (DRP), where they receive new BOQ shares rather than dividend cash.
If someone wants to take part in the DRP, they need to elect to do so by 5pm on Thursday, 29 October 2026. DRP allows investors to grow their ownership of the business without paying additional brokerage for that investment.
The post Everything you need to know about the BOQ dividend appeared first on The Motley Fool Australia.
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Motley Fool contributor Tristan Harrison 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.