First Merchants Posts 3.42% Dividend Yield and 7.7% EPS Growth Estimate
First Merchants has delivered a 12.19% stock gain year-to-date while paying a quarterly dividend of $0.36 per share, representing a 3.42% yield that tops the Banks–Midwest peer yield of 2.47%. The bank’s annual dividend of $1.44 marks a 0.7% increase year-over-year with a five-year CAGR of 7.24% and a conservative 37% payout ratio, underpinned by a 7.7% EPS growth estimate to $4.19.
1. Dividend Metrics
First Merchants pays a quarterly dividend of $0.36 per share, equal to $1.44 annually, yielding 3.42% based on current share price. The bank has raised its annual payout five times over the past five years, achieving an average annual increase of 7.24% while maintaining a 37% payout ratio.
2. Growth Outlook
Analysts project earnings per share of $4.19 for fiscal 2026, reflecting 7.71% year-over-year growth. This forecast supports further dividend increases without stretching the payout ratio beyond conservative levels.
3. Market Comparison
The stock has climbed 12.19% since January, outperforming regional bank peers. Its 3.42% yield outpaces the Banks–Midwest industry average of 2.47% and the S&P 500 average of 1.38%.