Updated 3/13/25
Park National Corporation (PRK) isn’t the kind of stock that makes headlines with wild price swings or explosive growth. Instead, it’s the type of company that quietly delivers steady dividends year after year. Based in Ohio, PRK operates a network of community banks, offering traditional financial services with a strong focus on stability and customer relationships.
For investors looking for reliable income, PRK has a track record that’s hard to ignore. It’s a well-run regional bank with consistent earnings, solid financials, and a history of rewarding shareholders through dividends. While it may not be the highest-yielding stock in the market, its steady payouts and disciplined financial management make it a compelling choice for those who value stability.
Key Dividend Metrics
📈 Dividend Yield: 2.81% (Forward)
💰 Annual Dividend Per Share: $4.28
📊 Payout Ratio: 45.49%
📅 Dividend Growth Streak: 20+ years
📆 Ex-Dividend Date: February 14, 2025
🔄 5-Year Average Dividend Yield: 3.50%
Dividend Overview
PRK has built a reputation for paying out consistent and growing dividends. The current yield sits at 2.81%, which, while slightly below its five-year average of 3.50%, still represents a healthy return for income-focused investors. The slight dip in yield is more a reflection of the stock’s price appreciation than any weakness in its dividend policy.
One of the most reassuring aspects of PRK’s dividend strategy is its conservative payout ratio. At 45.49%, it strikes a balance between rewarding shareholders and maintaining enough earnings to reinvest in the business. This disciplined approach suggests that even in a downturn, the company is unlikely to cut its dividend.
Another key factor is its history of consistent payments. PRK has increased its dividend over the years, demonstrating a long-term commitment to shareholder returns. While it may not offer the kind of aggressive dividend growth seen in high-growth sectors, it delivers steady, predictable income.
Dividend Growth and Safety
Dividend safety is crucial, and PRK appears to be in a strong position to sustain its payouts.
Dividend Growth
While PRK isn’t known for rapid dividend hikes, it has maintained a pattern of gradual increases. This kind of slow, steady growth is exactly what long-term income investors look for. The five-year average yield of 3.50% suggests that, over time, the dividend has remained competitive relative to its stock price.
Dividend Safety
A payout ratio under 50% is a reassuring sign. PRK is paying out less than half of its earnings as dividends, leaving room to absorb economic fluctuations without endangering its dividend policy. The company also boasts a return on equity (ROE) of 12.68%, a strong indicator of profitability.
With profit margins near 30% and an operating margin of 37.7%, PRK has the financial strength to continue rewarding shareholders even if the economy slows down.
Chart Analysis
The price action in Park National Corporation (PRK) over the past year tells an interesting story. After a strong uptrend that saw the stock peak above 200, the momentum has cooled, and the stock has pulled back significantly. The 50-day moving average, which was once providing solid support, has now turned downward and crossed below the 200-day moving average. This is often referred to as a death cross, a technical signal that suggests further downside could be ahead.
Moving Averages
The 50-day moving average was previously trending upward, supporting the rally that occurred in the second half of last year. However, in recent months, the stock has struggled to stay above this level. The 50-day has now turned lower and crossed under the 200-day moving average, which is a bearish technical signal.
Meanwhile, the 200-day moving average continues to rise, but at a slower pace. This suggests that long-term investors still see some stability, but the recent trend is weakening. If the price fails to reclaim the 50-day moving average soon, it could indicate that sellers are still in control.
Volume and Market Participation
Trading volume has seen some spikes, particularly during large moves in both directions. There were significant sell-offs in recent months, with large red bars appearing, indicating strong selling pressure. More recently, volume has tapered off, suggesting that the aggressive selling may have slowed, but there isn’t strong buying interest stepping in either.
For a sustained recovery, the stock would need to see an uptick in volume alongside price stabilization. Otherwise, continued low volume with declining price action could indicate further downside ahead.
Relative Strength Index (RSI)
The RSI is currently hovering near oversold territory, which suggests that the stock might be due for a short-term bounce. Historically, when RSI drops below 30, it indicates that selling pressure may be overextended. However, a weak RSI alone isn’t enough to call a bottom, especially when the broader trend remains bearish.
If the RSI begins to turn higher while price stabilizes, it could be an early signal that a reversal is in the works. On the other hand, if it stays suppressed for an extended period, it could indicate that weakness is likely to persist.
Price Action and Support Levels
The stock has broken below the 50-day moving average and is now testing levels near the 200-day moving average. This is a critical area for PRK because if it fails to hold this level, it could lead to another leg lower.
There is some historical support around the 150 level, which could act as a temporary floor. However, if this level fails, the next key area to watch would be near 140, where buyers have previously stepped in.
Recent Candlestick Patterns
Looking at the last five trading sessions, the candlesticks indicate some indecision. The wicks on recent candles show that there have been attempts to push the stock higher, but those rallies have been met with selling pressure. This kind of price action suggests that the market is still figuring out whether it wants to move higher or continue lower.
A strong green candle with higher volume could indicate that buyers are stepping in. Conversely, another series of lower highs and lower lows could confirm that the downtrend is still in play.
Analyst Ratings
Recent analyst evaluations of Park National Corporation (PRK) present a balanced perspective, reflecting both positive and cautious sentiments.
Upgrades:
📈 Some analysts have maintained a positive outlook on PRK, influenced by the company’s consistent earnings performance and stable financial metrics. The bank’s conservative lending practices and strong community presence have contributed to this favorable assessment. One of the key reasons for the optimistic stance is PRK’s ability to manage risk effectively while maintaining strong capital reserves. Analysts also noted the bank’s steady dividend payments as a positive factor for long-term investors.
Downgrades:
📉 On the other hand, some analysts have taken a more cautious approach, pointing to challenges that could impact PRK’s growth. Interest rate volatility remains a concern, as fluctuating rates could put pressure on the bank’s net interest margin. Additionally, increased competition in the regional banking sector and economic uncertainty have led some firms to lower their price targets for PRK. Analysts who downgraded the stock have also cited regulatory risks and the potential for slowing loan growth as reasons for their more conservative stance.
Consensus Price Target:
📊 The consensus price target for PRK is approximately $154, which suggests a modest upside from its current trading level. This target represents a balance between the bank’s solid financial foundation and the potential headwinds it may face in the near term. Analysts remain divided, with some seeing PRK as an attractive income investment while others believe market conditions may limit future upside.
Earning Report Summary
Park National Corporation wrapped up the fourth quarter of 2024 on a strong note, posting a net income of $38.6 million. That’s a solid jump of 57.7% compared to the same period in 2023. For the full year, earnings hit $151.4 million, up nearly 20% from the prior year, showing that the bank is on a steady upward trajectory.
Earnings per share also got a boost. In the last quarter, shareholders saw earnings of $2.37 per diluted share, up from $1.51 a year ago. Over the full year, that number came in at $9.32, compared to $7.80 in 2023. Investors looking for reliable returns will likely appreciate this kind of consistent growth.
Loan growth was another highlight. Total loans expanded by 4.6% throughout the year, suggesting strong demand and effective lending practices. Deposits also increased, though at a more modest 1.3%—but when factoring in off-balance sheet deposits, the growth came in at 2.7%. This indicates that customers continue to trust Park National with their money, which is always a good sign for a bank’s stability.
Dividends remain a key part of the company’s value proposition. The board declared a quarterly cash dividend of $1.07 per share, payable on March 10, 2025. Investors who were on record by February 14, 2025, will receive this payout, reinforcing the company’s reputation as a solid dividend-paying stock.
Looking at the bigger picture, total assets as of year-end 2024 came in at $9.8 billion. Park National Bank remains the core of the operation, but other subsidiaries—like Scope Aircraft Finance, Guardian Finance Company, and SE Property Holdings—also contribute to the overall business.
This earnings report paints a picture of a company that continues to execute well. Strong profit growth, steady loan expansion, and a stable deposit base all point to solid fundamentals. Add in a reliable dividend and an improving earnings trend, and it’s clear that Park National is staying true to its long-term strategy of growth and shareholder returns.
Financial Health and Stability
The foundation of any good dividend stock is financial stability. PRK’s balance sheet suggests it’s in solid shape.
Balance Sheet Strength
- Total Cash: $161.58 million
- Total Debt: $297.6 million
- Book Value Per Share: $76.98
PRK has a manageable debt load and a solid cash position, which provides flexibility in challenging economic conditions. The company’s book value per share of $76.98 indicates that it is trading at roughly twice its book value, a fairly typical valuation for a quality regional bank.
Revenue and Profitability
- Revenue (TTM): $506.06 million
- Net Income: $151.42 million
- Quarterly Revenue Growth (YoY): 20%
- Quarterly Earnings Growth (YoY): 57.7%
With both revenue and earnings showing healthy growth, PRK is on firm financial footing. A 57.7% year-over-year increase in earnings is particularly impressive and suggests the bank is managing its operations well despite broader market uncertainty.
Valuation and Stock Performance
For long-term investors, valuation matters just as much as dividend safety. Buying at the right price can make a big difference in total returns.
Stock Valuation
- Price-to-Earnings (P/E) Ratio: 16.33 (trailing), 23.70 (forward)
- Price-to-Book (P/B) Ratio: 1.98
- Price-to-Sales (P/S) Ratio: 4.75
PRK’s trailing P/E of 16.33 is reasonable, though its forward P/E of 23.70 suggests that earnings growth may slow or that the stock is trading at a slight premium.
Stock Performance
- 52-Week Range: $123.08 – $207.99
- 50-Day Moving Average: $167.67
- 200-Day Moving Average: $166.97
- Beta (5Y Monthly): 0.71
The stock has traded below both its 50-day and 200-day moving averages, which suggests some recent weakness. However, with a beta of 0.71, PRK is relatively stable compared to the broader market, making it an attractive choice for conservative investors.
Risks and Considerations
Interest Rate Sensitivity
As a regional bank, PRK’s earnings are closely tied to interest rate movements. If rates decline, its net interest margins could take a hit, affecting overall profitability.
Economic Downturns
Regional banks tend to be more exposed to local economic conditions. If the economy in PRK’s core markets weakens, it could lead to increased loan defaults and lower earnings.
Stock Price Volatility
While PRK has a long history of paying steady dividends, its stock price has been somewhat volatile over the past year. The price has ranged from $123 to $207, which could impact short-term returns for investors who are sensitive to price fluctuations.
Institutional Ownership
With 57.81% of shares held by institutions, PRK’s stock can be influenced by large fund movements. If institutional investors make significant shifts, it could lead to short-term volatility.
Final Thoughts
For investors focused on dividend income, Park National Corporation presents a compelling case. It offers a steady and sustainable dividend, backed by strong profitability and a conservative payout ratio. While its 2.81% yield is slightly below its five-year average, the company’s financial health and history of consistent payments make it a solid choice for long-term income investors.
There are some risks to consider, particularly regarding interest rate fluctuations and regional economic conditions. However, for those looking for a stable dividend payer with a long track record, PRK remains an attractive option in the banking sector.
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