Bank of Hawaii Corporation (NYSE:BOH) stock will go ex-dividend in just four days

Some investors rely on dividends to grow their wealth, and if you’re one of those dividend trackers, you might be interested to know Bank of Hawaii Corporation (NYSE:BOH) is poised to go ex-dividend in just four days. The ex-dividend date is one business day prior to a company’s record date when the company determines which shareholders are entitled to receive a dividend. It’s important to be aware of the ex-dividend date because every trade in the stock must be settled on or before the ex-dividend date. Therefore, you can buy Bank of Hawaii stock before November 29 to receive the dividend the company will pay on December 14.

The company’s next dividend payment is $0.70 per share. In total, the company paid out $2.80 to shareholders last year. Based on last year’s payments, Bank of Hawaii has a trailing yield of 3.4% on its current share price of $81.58. Dividends make an important contribution to investment returns for long-term holders, but only if the dividend continues to be paid. Because of this, readers should always check to see if the Bank of Hawaii has been able to increase its dividends, or if the dividend may be cut.

Our analysis indicates this BOH is potentially undervalued!

Dividends are usually paid out of company profits. So when a company pays out more than it earns, there’s usually a greater risk of its dividend being cut. The Bank of Hawaii paid out 50% of its profits to investors last year, a normal payout level for most companies.

Companies that pay less dividends than they make profits tend to have more sustainable dividends. The lower the payout ratio, the more leeway the company has before it could be forced to cut the dividend.

Click here to view the company’s payout ratio and analyst estimates of its future dividends.

historical dividend
NYSE:BOH Historical Dividend November 24, 2022

Have profits and dividends grown?

Companies with strong growth prospects tend to be the best dividend payers because it’s easier to grow dividends when earnings per share improve. With earnings falling and the company forced to cut its dividend, investors could watch the value of their investment go up in smoke. For that reason, it’s a relief to see that Bank of Hawaii’s earnings per share have grown 5.3% annually over the past five years.

Another important way to measure a company’s dividend prospects is to measure its historical dividend growth rate. Over the past 10 years, the Bank of Hawaii has increased its dividend by an average of 4.5% per year. We’re pleased to see dividends growing alongside earnings over a number of years, which could be a sign that the company intends to share growth with shareholders.

The final result

Is Bank of Hawaii an Attractive Dividend Stock or Better on the Shelf? Earnings per share have grown reasonably, and the company pays out just over half of its earnings as a dividend. Overall, this is a so-so combination, and we have a hard time getting excited about the company from a dividend perspective.

Wondering what the future holds for Bank of Hawaii? See what the five analysts we follow are forecasting with this visualization of their historical and future estimated earnings and cash flows

In general, we wouldn’t recommend simply buying the first dividend stock you see. Here is a curated list of interesting stocks that are strong dividend payers.

The assessment is complex, but we help to simplify it.

find out if Banks of Hawaii may be over or under priced by reviewing our comprehensive analysis which includes the following Fair Value Estimates, Risks and Warnings, Dividends, Insider Trading and Financial Health.

Check out the free analysis

This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.