Portfolio Update
The FiveTwenty portfolio received $59.15 in dividends in the past week. OZK paid its quarterly dividend during the week.
| Past Week Dividend | $59.15 |
| Current Quarter Dividend (Q2 2023) | $312.68 |
| LifeTime Dividend | $10,486.26 |
| Estimated Annual Dividend | $8,994.75 |
The capital allocation for the week of 04/23/2023 to 04/29/2023 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 14 of 2023, the company reported Q1 2023 earnings on 04/20/2023. In addition, the share price increased 3.5% from $34.20 to $35.39 during the period.
| TTM | Prev. Update | 10-year median | |
| Dividend Streak | 27 years | 27 years | |
| Yield | 3.79% | 3.80% | 1.56% |
| Payout Ratio | 27.18% | 28.63% | 27% |
| P/E | 7.17 | 7.53 | 14.92 |
Q1 2023 earnings report
Did OZK’s latest earnings report raise any warning flags?
For Q1 2023, the company reported record earnings. Net income increased 29.5% and EPS were 38.2% higher than in the year ago quarter. Pre-tax and pre-provision net revenue (PPNR) was a record $264.4 million compared to $173.1 million in Q1 2022.
| Revenue (in millions) | Net Income (in millions) | EPS . | |
| Q1 2022 | – | $128 | $1.02 |
| Q1 2023 | – | $165.9 | $1.41 |
| % Change | – | 29.5% | 38.2% |
Additional noteworthy developments during the quarter:
- On 04/03/2023, the company declared a dividend of $0.35 per share, and increase of 2.9% from prior dividend, payable 04/21/2023 to shareholders of record on 04/14/2023.
Thesis
Why are we adding to our position in OZK?
The company posted record earnings in a quarter that saw the high-profile bankruptcies of Silicon Valley Bank and Signature Bank. In addition, as part of the shareholder meeting the bank’s management provided a detailed overview and analysis of the bank’s securities portfolio, balance sheet, and the principles governing the bank’s operations.
The bank seems to be well positioned to weather the current turmoil caused by the FED’s rapid increase in interest rates. Therefore, we continue to regard the current pullback in the share price as an opportunity to build our position in the company.
Previous Articles
- 2023 Week 14: Bank OZK (NASDAQ: OZK)
- 2021 Week 41: Bank OZK (NASDAQ: OZK)
- 2021 Week 32: Bank OZK (NASDAQ: OZK)
Photo by Tierra Mallorca on Unsplash