Updated 3/6/25
BOK Financial Corporation (NASDAQ: BOKF) is a regional banking institution with a strong presence in the Midwest and Southwest. Based in Tulsa, Oklahoma, the company offers a wide range of financial services, including commercial banking, wealth management, and investment solutions. Unlike the larger national banks, BOK Financial maintains a more localized focus, which has helped it navigate various economic cycles with a measured, disciplined approach.
For dividend investors, this stock presents an interesting case. It may not be the highest-yielding option out there, but it offers consistency, solid financial health, and a track record of responsible dividend payments. Let’s take a closer look at the key metrics and what they mean for income-focused investors.
Key Dividend Metrics
📈 Dividend Yield: 2.16% (Forward)
💵 Annual Dividend Per Share: $2.28
📊 Payout Ratio: 27.27% – Plenty of room for future increases
📅 Ex-Dividend Date: February 12, 2025
📆 Next Dividend Date: February 26, 2025
📊 5-Year Average Yield: 2.57% – Slightly higher than the current yield
💰 Dividend Growth: Consistent but measured
Dividend Overview
BOK Financial doesn’t offer an eye-popping yield, but it does provide stability. The current dividend yield of 2.16% is reasonable for a regional bank of its size, and the payout ratio of just 27.27% suggests a strong cushion to maintain or even grow dividends in the future.
This company follows a conservative dividend policy, meaning investors shouldn’t expect rapid increases, but they can rely on steady payouts backed by solid earnings. The bank’s ability to generate consistent cash flow makes its dividend policy sustainable, even during periods of economic uncertainty.
Dividend Growth and Safety
The hallmark of BOK Financial’s dividend is its reliability. The company has a long track record of paying dividends, and while it doesn’t hike payments aggressively, it does increase them gradually over time.
What makes the dividend especially safe is the bank’s earnings strength. Quarterly earnings growth came in at an impressive 64.9% year-over-year, reinforcing the company’s profitability. With a return on equity of 9.79%, the management team has been effective in using capital to generate solid returns.
Another positive sign is the company’s cash flow. With $1.43 billion in operating cash flow, BOK Financial has ample resources to fund its dividend payments, reducing the likelihood of cuts even if economic conditions become more challenging.
Chart Analysis
Overall Trend
The stock has experienced a strong uptrend for most of the past year, peaking above 120 before starting to decline. The momentum was solid through the middle of the year, with higher highs and higher lows forming a well-defined upward channel. However, in recent months, there has been a noticeable shift in sentiment as the stock has lost ground, now sitting just above the 200-day moving average.
Moving Averages
The 50-day moving average, shown in orange, has started sloping downward, which signals a potential trend reversal. The stock was trading well above this level for most of its run-up, but the recent dip below it suggests that short-term momentum has weakened. Meanwhile, the 200-day moving average in blue continues to rise, which indicates that the broader trend is still intact despite the recent pullback. The price is currently testing this long-term moving average, an area that often acts as a crucial support level.
Volume Analysis
Trading volume has been relatively stable, with a few notable spikes during periods of price movement. There was a large volume surge around the October timeframe, coinciding with a significant upward push. However, in recent weeks, volume has remained muted compared to those earlier breakouts. Lower volume during a downtrend could indicate a lack of conviction among sellers, but if volume increases on further declines, it may suggest stronger selling pressure.
Relative Strength Index (RSI)
The RSI is trending lower, indicating that the stock has lost some of its buying momentum. It is not yet in oversold territory, but it is approaching levels where buyers might step back in. If the RSI drops below 30, it could signal that the stock is oversold, increasing the likelihood of a short-term bounce. Conversely, if the RSI fails to rebound and continues to drift lower, it could suggest that further downside may be ahead.
Recent Price Action
The last few candles show some volatility, with long wicks on both ends, indicating indecision in the market. The price opened near the high of the day and closed lower, showing some selling pressure. The key area to watch is how the stock reacts to the 200-day moving average. If it holds this level and starts to rebound, it could suggest a return of buying interest. If it breaks below with increased volume, it could indicate that more downside is likely.
Analyst Ratings
📊 Upgrades
📈 On October 15, an analyst at DA Davidson upgraded BOK Financial Corporation from Neutral to Buy, raising the price target to $124. The upgrade was based on the bank’s strong fee income and favorable deposit cost structure, which are expected to support earnings even in a potential lower interest rate environment. The analyst also highlighted BOKF’s diversified revenue streams and conservative loan-to-deposit ratio, factors that contribute to its financial stability.
📊 Downgrades
🔻 In early August, a credit rating agency downgraded BOK Financial Corporation’s long-term issuer rating due to concerns about asset quality and regional economic exposure. While the outlook remains stable, the downgrade reflects increased caution about how the bank will navigate potential credit risks and a competitive banking landscape. The firm emphasized the importance of maintaining strong capital levels as economic conditions fluctuate.
📊 Consensus Price Target
💰 The current consensus twelve-month price target for BOKF is $116.40, suggesting a potential 11% upside from its recent trading levels. Analyst price estimates range from a low of $92 to a high of $127, reflecting a mix of optimism and caution in the market.
🔍 The consensus rating remains at Hold, indicating that analysts see the stock as fairly valued at current levels, with neither strong buy nor strong sell recommendations dominating the outlook. The combination of recent upgrades and downgrades shows a balance between confidence in the bank’s long-term strength and concerns over near-term financial pressures.
Earning Report Summary
BOK Financial recently released its latest earnings report, and there’s a lot to unpack. The company wrapped up the fourth quarter on a strong note, with solid profits, steady loan growth, and a stable deposit base. It’s clear that even with economic uncertainties, BOKF is keeping things moving in the right direction.
Net Income and Earnings Per Share
For the quarter, the company posted net income of $140.6 million, translating to earnings per share (EPS) of $2.12. That’s a nice jump from the same period last year when EPS was sitting at $1.76. Looking at the full year, net income totaled $530.7 million, with an EPS of $8.14—a sign that the company is maintaining strong financial health across the board.
Revenue Growth
Total revenue for the fourth quarter came in at $2.03 billion, reflecting a 5.6% year-over-year increase. A big driver of this growth was net interest income, which remained stable thanks to solid loan performance. Fee-based income also contributed, with revenues from wealth management and other financial services holding up well.
Loan and Deposit Trends
Lending activity remained strong, particularly in the commercial and industrial (C&I) loan segment, which grew by 8.1% compared to last year. This suggests that businesses are still seeking financing, a good indicator of economic activity in BOKF’s core markets. On the deposit side, balances remained stable, which is reassuring given the competitive environment for deposits.
Strong Asset Quality
One of the key takeaways from this report is BOKF’s solid asset quality. Non-performing assets stayed low, and the company’s allowance for credit losses looks well-managed. This indicates that, despite concerns about credit conditions, the bank has a good handle on risk.
Capital Position and Expenses
BOKF continues to maintain strong capital ratios, staying well above regulatory requirements. This gives it plenty of flexibility to weather economic shifts while still investing in growth. Operating expenses did tick up slightly to $341 million, mainly due to higher compensation costs, but that’s not surprising given the company’s expansion efforts.
What Management Had to Say
CEO Stacy Kymes was upbeat about the results, crediting the company’s focus on loan growth, disciplined lending, and a diverse revenue mix. He pointed out that BOKF has built a business model that performs well across economic cycles, and the latest numbers seem to support that claim.
Overall, the report paints a picture of a well-run regional bank that continues to find ways to grow, even in a challenging environment.
Financial Health and Stability
A strong balance sheet is key for any bank, and BOK Financial checks that box. The company holds $6.58 billion in total cash, giving it a solid liquidity position. Additionally, with a book value per share of $86.53, the company’s tangible assets provide a strong foundation for long-term stability.
With a stock price currently sitting around $102.72, the price-to-book ratio of 1.22 suggests that shares are not trading at an excessive premium. Investors looking for financial institutions with a solid asset base will find this reassuring.
On the debt side, BOK Financial carries $4.94 billion in total obligations. However, given its strong cash flow and disciplined lending practices, this debt load appears manageable. The bank has historically taken a cautious approach to risk, which has helped it avoid major financial troubles in the past.
Valuation and Stock Performance
At its current price levels, BOK Financial is trading at a trailing price-to-earnings (P/E) ratio of 12.94 and a forward P/E of 12.03. These valuations suggest that the stock is reasonably priced for a well-capitalized regional bank. The price-to-sales ratio of 3.47 indicates that the market assigns a fair valuation to the company’s revenue stream.
Looking at recent price action, BOKF has traded within a 52-week range of $85.02 to $121.58. With a beta of 1.20, the stock has exhibited slightly more volatility than the broader market. Investors should note that the 50-day moving average stands at $109.34, while the 200-day moving average sits at $104.46. This suggests the stock has pulled back recently but is still trading in line with historical trends.
Risks and Considerations
No stock is without risk, and BOK Financial has its fair share of factors that investors should consider.
- Interest Rate Sensitivity – Like all banks, BOK Financial’s profitability is tied to interest rates. If rates decline, the bank’s net interest margin could shrink, impacting earnings.
- Regional Concentration – Since the company operates mainly in the Midwest and Southwest, it is more exposed to localized economic downturns compared to nationwide banks.
- Loan Portfolio Risks – While the bank has a history of prudent lending, any significant deterioration in asset quality could negatively impact financial performance.
- Stock Price Volatility – With a beta of 1.20, BOK Financial’s stock tends to move more than the overall market, which means investors should be prepared for price swings.
Despite these risks, the company’s strong capital position and conservative management approach provide a degree of protection against economic uncertainties.
Final Thoughts
BOK Financial is a solid choice for dividend investors who prioritize stability over high yields. The payout ratio remains low, earnings are growing, and management has demonstrated a long-term commitment to rewarding shareholders while maintaining financial discipline.
The 2.16% yield may not be the highest among banking stocks, but it is backed by a well-covered dividend and strong cash flow. Investors looking for a regional bank with steady, reliable payouts and solid financial health may find BOK Financial to be an attractive option for a long-term portfolio.
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