Bank OZK Raises Quarterly Dividend 2.1% to $0.49

Bank OZK raised its quarterly common dividend 2.1% to $0.49 a share from $0.48. The shares traded ex-dividend on October 13, 2026, and the payment is due October 20, 2026.

Why the dividend changed

The declaration did not attribute the increase to a single quarter’s earnings, a transaction or a special distribution. It continued Bank OZK’s established practice of increasing the common dividend regularly. Nothing in the announcement tied the change to a stock split, merger or spin-off. The board also declared a separate dividend on the bank’s preferred stock. (Bank OZK dividend announcement)

The latest reported results provide the financial context. Net income available to common shareholders was $163.3 million in the second quarter of 2026, down 8.7% from a year earlier but up 2.5% from the first quarter. Diluted earnings per common share were $1.49, down 5.7% from a year earlier and up 3.5% sequentially. Chairman and Chief Executive George Gleason also cited increases in book value, tangible book value and capital ratios. (Bank OZK second-quarter results)

Management said Corporate and Institutional Banking and other lending teams generated strong growth that mostly offset near-record repayments in the Real Estate Specialties Group. The bank also reported progress diversifying its loan portfolio, expanding its Sun Belt deposit franchise and managing late-cycle difficulties involving a small number of commercial real estate sponsors. Those developments matter because earnings quality, credit costs and regulatory capital ultimately determine the capacity for bank dividends. (Second-quarter management comments)

Bank OZK’s latest quarterly filing said its capital levels exceeded the thresholds required to be considered well capitalized. Stress tests completed during the second quarter also indicated that the bank would retain well-capitalized status across the scenarios tested. Management identified quarterly dividend increases alongside organic loan growth, new business lines, share repurchases and acquisitions as potential uses of its capital and earnings. (Bank OZK second-quarter Form 10-Q)

Dividend track record

Bank OZK has increased its dividend for 27 consecutive years. The recent payment history shows a methodical quarterly progression: $0.42 on the January 14, 2025, ex-dividend date, followed by $0.43, $0.44 and $0.45 during the remainder of 2025. The pattern continued with $0.46 on January 13, 2026, $0.47 on April 13, $0.48 on July 13 and $0.49 on October 13.

Full-year totals show that repeated quarterly increases have accumulated into faster annual growth. Payments rose from $1.08 a share in 2020 to $1.13 in 2021, an increase of 5.1%. The annual total then increased 11.2% to $1.26 in 2022, 12.7% to $1.42 in 2023, 11.3% to $1.58 in 2024 and 10.1% to $1.74 in 2025.

The five-year record amounts to 9.9% annual growth. The new quarterly rate corresponds to an annual dividend of $1.96 a share, or $196.00 in annual income for every 100 shares if the rate remains unchanged and dividends are not reinvested.

Is the dividend covered?

The dividend consumes 30% of earnings. That payout ratio indicates most earnings remain available for capital formation, lending, credit losses and other corporate purposes after the common dividend.

SmarterDividends rates the dividend A with a safety score of 95. That falls within the very safe range of 80-100 and reflects strong current coverage. The grade is an assessment of the existing financial position, not a guarantee against future changes. For a bank, earnings resilience and regulatory capital are particularly important because both can be affected by credit conditions and loan losses.

Yield and valuation

At a share price of $46.12, Bank OZK’s forward yield is 4.25%. That is below the Financial Services sector median forward yield of 5.83%, meaning the stock offers less current dividend income than the sector benchmark despite its long growth record.

SmarterDividends estimates fair value at $36.44 and classifies the shares as overvalued, corresponding to 21% downside to fair value. That valuation assessment is separate from dividend coverage: the A safety grade addresses the payout, while the fair-value verdict compares the market price with the estimated value.

What to watch

The immediate calendar item is the October 20, 2026, dividend payment. Bank OZK is also scheduled to report third-quarter results after the market closes that day, followed by its earnings call on October 21. The release, financial supplement and management comments will provide updated information on earnings, capital and credit quality. (Bank OZK third-quarter reporting schedule)

Management’s loan-diversification effort remains central. The bank has guided to mid-single-digit loan growth for full-year 2026, with Corporate and Institutional Banking growth expected to offset substantial Real Estate Specialties Group repayments. Investors can also track the small group of challenged commercial real estate sponsors identified by management and whether related credit costs affect earnings retention.

Future common dividends remain subject to board approval and conditions at the time of each declaration. The relevant evidence in upcoming reports will be the durability of earnings, changes in capital ratios and progress balancing new loan production against repayments and commercial real estate risk.