Parke Bancorp Inc's Dividend Analysis
Assessing the Sustainability and Growth of Parke Bancorp Inc's Dividends
Parke Bancorp Inc (NASDAQ:PKBK) recently announced a dividend of $0.18 per share, payable on 2024-01-17, with the ex-dividend date set for 2024-01-02. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Parke Bancorp Inc's dividend performance and assess its sustainability.
What Does Parke Bancorp Inc Do?
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Parke Bancorp Inc operates as a commercial bank providing personal and financial services to individuals and small to mid-sized businesses in various states of the USA. The bank offers services such as loan products, deposit services, and other financial products through its retail branches and other channels to its customers. Its lending businesses are commercial real estate lending, residential real estate lending, and construction lending among others. The Company operates one reportable segment of business, community banking.
A Glimpse at Parke Bancorp Inc's Dividend History
Parke Bancorp Inc has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Parke Bancorp Inc's Dividend Yield and Growth
As of today, Parke Bancorp Inc currently has a 12-month trailing dividend yield of 3.56% and a 12-month forward dividend yield of 3.56%. This suggests an expectation of the same dividend payments over the next 12 months.
Over the past three years, Parke Bancorp Inc's annual dividend growth rate was 7.70%. Extended to a five-year horizon, this rate increased to 16.00% per year. Based on Parke Bancorp Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Parke Bancorp Inc stock as of today is approximately 7.48%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, Parke Bancorp Inc's dividend payout ratio is 0.28.
Parke Bancorp Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Parke Bancorp Inc's profitability 6 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Parke Bancorp Inc's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Parke Bancorp Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Parke Bancorp Inc's revenue has increased by approximately 9.90% per year on average, a rate that outperforms approximately 68.12% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Parke Bancorp Inc's earnings increased by approximately 11.10% per year on average, a rate that outperforms approximately 57.55% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 22.20%, which outperforms approximately 84.73% of global competitors.
Next Steps
In conclusion, Parke Bancorp Inc's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics present a compelling picture for value investors. The company's consistent dividend history, coupled with a reasonable payout ratio and strong profitability, indicate a sustainable dividend policy. Furthermore, robust growth metrics suggest a promising future outlook, potentially leading to continued dividend increases. Investors seeking income-generating stocks with a stable dividend might find Parke Bancorp Inc an attractive option to consider. Will Parke Bancorp Inc continue to reward shareholders with growing dividends? That remains a key question for investors monitoring this community bank's financial health and market position.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
