Bank OZK's (NASDAQ:OZK) dividend will be increasing from last year's payment of the same period to $0.41 on 18th of October. Based on this payment, the dividend yield for the company will be 3.8%, which is fairly typical for the industry.

See our latest analysis for Bank OZK

While it is always good to see a solid dividend yield, we should also consider whether the payment is feasible.

Bank OZK has a long history of paying out dividends, with its current track record at a minimum of 10 years. While past data isn't a guarantee for the future, Bank OZK's latest earnings report puts its payout ratio at 25%, showing that the company can pay out its dividends comfortably.

The next 3 years are set to see EPS grow by 23.4%. The future payout ratio could be 26% over that time period, according to analyst estimates, which is a good look for the future of the dividend.

The company has a sustained record of paying dividends with very little fluctuation. Since 2014, the dividend has gone from $0.44 total annually to $1.60. This means that it has been growing its distributions at 14% per annum over that time. Rapidly growing dividends for a long time is a very valuable feature for an income stock.

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. We are encouraged to see that Bank OZK has grown earnings per share at 14% per year over the past five years. Bank OZK definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All of these factors considered, we think this has solid potential as a dividend stock.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Earnings growth generally bodes well for the future value of company dividend payments. See if the 8 Bank OZK analysts we track are forecasting continued growth with our free report on analyst estimates for the company. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.