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Parke Bancorp Inc (NASDAQ:PKBK): Ex-Dividend Is Coming In 3 Days, Should You Buy?

If you are interested in cashing in on Parke Bancorp Inc’s (NASDAQ:PKBK) upcoming dividend of $0.12 per share, you only have 3 days left to buy the shares before its ex-dividend date, 11 January 2018, in time for dividends payable on the 26 January 2018. Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? Let’s take a look at Parke Bancorp’s most recent financial data to examine its dividend characteristics in more detail. View our latest analysis for Parke Bancorp

5 questions to ask before buying a dividend stock

When researching a dividend stock, I always follow the following screening criteria:

  • Does it pay an annual yield higher than 75% of dividend payers?

  • Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

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

  • Is is able to pay the current rate of dividends from its earnings?

  • Will it be able to continue to payout at the current rate in the future?

NasdaqCM:PKBK Historical Dividend Yield Jan 7th 18
NasdaqCM:PKBK Historical Dividend Yield Jan 7th 18

How well does Parke Bancorp fit our criteria?

Parke Bancorp has a payout ratio of 23.76%, 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. The reality is that it is too early to consider Parke Bancorp as a dividend investment. It has only been consistently paying dividends for 4 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. Compared to its peers, Parke Bancorp has a yield of 2.34%, which is on the low-side for banks stocks.

What this means for you:

Are you a shareholder? Investors may not have the best feeling about their investment in Parke Bancorp right now, in terms of its dividend attributes. It may be worth exploring other dividend stocks as alternatives to Parke Bancorp or even look at high-growth stocks to complement your steady income stocks. I encourage you to continue your research by exploring my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.

Are you a potential investor? After digging a little deeper into Parke Bancorp’s yield, it’s easy to see why you should be cautious investing in the company just for the dividend. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity. As always, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. Take a look at our latest free fundmental analysis to explore other aspects of Parke Bancorp.

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.