2021 Week 41: Bank OZK (NASDAQ: OZK)

Portfolio Update

The FiveTwenty portfolio received $246 dividends in the past week. ORI paid a one-time special dividend during the week.

Past Week Dividend$246
Current Quarter Dividend (Q4 2021)$246
LifeTime Dividend$1,347.33
Estimated Annual Dividend$3,016.23
Dividend Scorecard

The capital allocation for the week of 10/10/2021 to 10/16/2021 will be used to add to our position in Bank OZK (NASDAQ: OZK)

OZK – Position Update

Since our last check-in on OZK in week 32 of 2021, the company declared Q4 2021 dividend of $0.29 per share on 10/01/2021. Additionally, the share price has increased by 2.1% from $43.16 to $44.09.

TTMPrev. Update10-year median
Dividend Streak25 years25 years
Yield2.53%2.59%1.42%
Payout Ratio27.5%27.5%25%
P/E10.8310.2214.94
Entry Criteria Scorecard

Q2 2021 earnings report

Did OZK’s latest earnings report raise any warning flags?

We discussed the company’s 2021 financial results in the previous article. The strong Q1 2021 performance continued into Q2 2021. Overall, net income increased 199.5%, and EPS were 197.4% higher than the same period a year ago.

Revenue
(in millions)
Net Income
(in millions)
EPS
.
Q2 2020$50.3$0.39
Q2 2021$150.5$1.16
% Change199.5%197.4%

Additional noteworthy developments during the quarter:

  • On 10/01/2021 the company declared it’s Q4 2021 dividend of $0.29 per share, an increase of 1.75% from the Q3 2021 dividend.

Thesis

Why are we adding OZK to the FiveTwenty portfolio?

Since there were no significant developments for the company since our last update, our investment thesis remains unchanged. With the share price more or less flat, we are taking the opportunity to add to our position in the company at a similar valuation to our initial investment ahead of the Q4 ex-dividend date.

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