On Friday, January 2, 2026, the Board of Directors of Bank OZK (NASDAQ: OZK) announced a quarterly dividend increase from $0.45 to $0.46 per share. The dividend is payable on January 20, 2026, to shareholders of record as of January 13, 2026. This represents a 2.22% increase over the prior quarterly dividend.
On a year-over-year basis, this increase represents a 9.52% raise compared to the dividend paid during the same quarter last year. Bank OZK has an exceptional dividend track record, having raised its dividend every quarter for 62 consecutive quarters, underscoring management’s long-term commitment to returning capital to shareholders.
Current Dividend Yield and Income Impact
At yesterday’s closing price of $47.04, this dividend increase brings Bank OZK’s forward dividend yield to approximately 3.91%, which is attractive for a high-quality regional bank with consistent profitability.
As an owner of 140 shares of Bank OZK, this increase adds $4.17 to my projected annual net dividend income. The raise was in line with my expectations, and I am happy to accept it.
Long-Term Dividend Growth Track Record
Bank OZK is a Dividend Champion, boasting a 29-year streak of dividend increases. According to Dividend Champions data, the company’s dividend growth rates are impressive:
- 1-year: 11.3%
- 3-year: 11.7%
- 5-year: 10.9%
- 10-year: 12.9%
This marks the fifth dividend increase I’ve received from Bank OZK since initiating my position in September 2024. Following this latest raise, my yield on cost has increased to 4.57%.
Quick Valuation Take
At current prices, Bank OZK appears fairly valued to modestly undervalued relative to its historical valuation and dividend yield. The market continues to price OZK conservatively due to broader concerns around regional banks, which may provide long-term dividend investors with a reasonable entry point for a high-quality operator.
Dividend Safety and Outlook
Bank OZK’s dividend appears very well covered, supported by strong earnings, disciplined underwriting, and conservative payout ratios. The bank’s long-standing dividend growth streak, combined with quarterly increases, suggests a high degree of dividend reliability and sustainability. While banking is cyclical, OZK’s conservative risk management provides confidence in continued dividend growth over time.
Final Thoughts
This dividend increase reinforces Bank OZK’s status as a core dividend growth holding in my portfolio. While growth may remain modest on a quarterly basis, the consistency, safety, and compounding effect of frequent dividend increases make OZK an attractive long-term income investment.
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Full Disclosure: Long OZK
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