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Park National Corporation (NYSEMKT:PRK) Goes Ex-Dividend Soon

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Simply Wall St
·3 min read
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Park National Corporation (NYSEMKT:PRK) is about to trade ex-dividend in the next two days. You can purchase shares before the 19th of November in order to receive the dividend, which the company will pay on the 10th of December.

Park National's upcoming dividend is US$1.02 a share, following on from the last 12 months, when the company distributed a total of US$4.08 per share to shareholders. Calculating the last year's worth of payments shows that Park National has a trailing yield of 4.0% on the current share price of $102.77. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to check whether the dividend payments are covered, and if earnings are growing.

See our latest analysis for Park National

Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Park National paid out more than half (62%) of its earnings last year, which is a regular payout ratio for most companies.

Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

historic-dividend
historic-dividend

Have Earnings And Dividends Been Growing?

Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. With that in mind, we're encouraged by the steady growth at Park National, with earnings per share up 3.7% on average over the last five years.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Since the start of our data, 10 years ago, Park National has lifted its dividend by approximately 0.8% a year on average.

To Sum It Up

Should investors buy Park National for the upcoming dividend? Earnings per share have been growing at a reasonable rate, and the company is paying out a bit over half its earnings as dividends. We're unconvinced on the company's merits, and think there might be better opportunities out there.

So if you want to do more digging on Park National, you'll find it worthwhile knowing the risks that this stock faces. For example - Park National has 1 warning sign we think you should be aware of.

If you're in the market for dividend stocks, we recommend checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.