Park Sterling Corp. : PSTB-US: Dividend Analysis : November 08th, 2016 (record date) : By the numbers : January 6, 2017

Our analysis is based on comparing Park Sterling Corp. with the following peers – SunTrust Banks, Inc., First Community Bancshares, Inc., Synovus Financial Corp., HomeTrust Bancshares, Inc., United Bankshares, Inc., Capital Bank Financial Corp. Class A and BB&T Corporation (STI-US, FCBC-US, SNV-US, HTBI-US, UBSI-US, CBF-US and BBT-US).

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to September 30, 2016), PSTB-US paid a medium quality dividend, which represents a yield of 1.20% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during 3 of these years — of these 1 was medium quality and 2 were low quality.
  • The ending cash balance, with a dividend coverage of 5.25x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

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High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to September 30, 2016), PSTB-US paid a medium quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 2.47x), investing cash flow (coverage of -14.25x), issuance cash flow (coverage of 15.13x) and twelve-month prior cash (coverage of 2.41x), for a total dividend coverage of 6.25x.

PSTB-US‘s issuance cash flow includes outflows from net share buybacks (coverage of -0.21x). Thus, the total coverage including share buybacks is 6.46x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.

Dividend History

Item 2011-12-31 2012-12-31 2013-12-31 2014-12-31 2015-12-31 Latest
Dividend Yield (%) 0 0 0.56 1.09 1.64 1.3
Dividend Payout (%) 0 0 11.76 27.59 32.43 35.14

A complete list of metrics and analysis is available on the company page.

Company Profile

Park Sterling Corp. operates as a bank holding company for Park Sterling Bank, which provides banking services. The bank’s primary focus is to provide banking services to small and mid-sized businesses, owner-occupied and income producing real estate owners and professionals. It offers a wide range of banking products, including personal and business checking accounts, individual retirement accounts, business and personal money market accounts, certificates of deposit, overdraft protection, safe deposit boxes and online banking. Park Sterling was founded on October 6, 2010 and is headquartered in Charlotte, NC.


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