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Only 3 Days Left To Park National Corporation (NYSEMKT:PRK)’s Ex-Dividend Date, Should Investors Buy?

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Alvin Rowe
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Important news for shareholders and potential investors in Park National Corporation (AMEX:PRK): The dividend payment of $1.21 per share will be distributed into shareholder on 08 June 2018, and the stock will begin trading ex-dividend at an earlier date, 17 May 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding Park National can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. See our latest analysis for Park National

5 questions to ask before buying a dividend stock

If you are a dividend investor, you should always assess these five key metrics:

  • Is it paying an annual yield above 75% of dividend payers?

  • Has it paid dividend every year without dramatically reducing payout in the past?

  • Has it increased its dividend per share amount over the past?

  • Can it afford to pay the current rate of dividends from its earnings?

  • Based on future earnings growth, will it be able to continue to payout dividend at the current rate?

AMEX:PRK Historical Dividend Yield May 13th 18
AMEX:PRK Historical Dividend Yield May 13th 18

Does Park National pass our checks?

Park National has a trailing twelve-month payout ratio of 60.45%, which means that the dividend is covered by earnings. Furthermore, analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect, and whether the current payout is sustainable, moving forward. Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. In the case of PRK it has increased its DPS from $3.76 to $3.84 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. This is an impressive feat, which makes PRK a true dividend rockstar. In terms of its peers, Park National produces a yield of 3.39%, which is on the low-side for Banks stocks.

Next Steps:

With this in mind, I definitely rank Park National as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. Given that this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. Below, I’ve compiled three essential aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for PRK’s future growth? Take a look at our free research report of analyst consensus for PRK’s outlook.

  2. Valuation: What is PRK worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether PRK is currently mispriced by the market.

  3. Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.