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BOK Financial (BOKF) Rewards Shareholders With Dividend Hike

BOK Financial Corporation BOKF raised its quarterly common stock dividend nearly 2.27% to 45 cents per share. The dividend will be paid on Nov 27 to shareholders of record as of Nov 13, 2017.

BOK Financial’s robust business model reflects the company’s commitment toward returning value to shareholders with its strong cash generation capabilities. Prior to this revision, the company had raised its quarterly dividend to 44 cents per share in October 2016 — marking a 2.3% hike.

Considering last day’s closing price of $86.47 per share, the dividend yield is currently valued at 2.08%.

Investors interested in this Zacks Rank #3 (Hold) stock can have a look at the banking stock’s fundamentals and growth avenues.

Revenue Growth: Organic growth remains strong at BOK Financial. Revenues witnessed a compound annual growth rate of 5.7% over the last three years (2014-2016). Further, the top line is likely to increase 7.1% in 2017 compared with no growth for the industry.

Earnings Strength: While BOK Financial recorded a negative earnings growth rate of 4.4% over the last three to five years compared with positive growth of 5.4% for the industry it belongs to, the company’s earnings growth rate for the current year is anticipated to be 52.3%. This drastic improvement is perhaps majorly attributable to the acquisitions made by the company last year.

Also, the long-term (three-five years) expected EPS growth of 8% promises rewards for its shareholders. The company also has a decent earnings surprise history, outpacing the Zacks Consensus Estimate in two of the trailing four quarters. It delivered an average positive surprise of 2.7% for this period.

Strong Inorganic Growth: BOK Financial has grown significantly over the years through several strategic acquisitions that transformed it from merely being a bank in Oklahoma to a chief financial service provider. In 2016, the company acquired Spectrum Advisors, a Dallas-based energy investment banking firm — Weaver Wealth Management — an asset management firm, and Kansas City, MI-based MBT Bancshares. The deals are anticipated to be accretive in the upcoming quarters.

Stock is Undervalued: BOK Financial has a P/E ratio of 16.07 compared to the S&P 500 average of 19.50. Further, the company has a P/B ratio of 1.64 compared to the S&P 500 average of 3.24. Based on these ratios, the stock seems undervalued.

Share Price Movement: BOK Financial’s shares have gained 4.1% so far, this year, compared with 2.7% growth recorded by the industry.

Stocks to Consider

Enterprise Financial Services Corporation EFSC has been witnessing upward estimate revisions for the last seven days. Additionally, the stock jumped more than 3% over the past six months. It currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

First Financial Bancorp FFBC has been witnessing upward estimate revisions for the last 30 days. Also, the company’s shares have risen nearly 28% over the past year. It holds a Zacks Rank of 2, at present.

The PNC Financial Services Group, Inc. PNC has been witnessing upward estimate revisions for the past 30 days. Over the last six months, the company’s share price has been up more than 13%. It also carries a Zacks Rank of 2.

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