1st Source (SRCE) Could Be a Great Choice

Company Overview - 1st Source (SRCE) is based in South Bend and operates in the Finance sector, with a year-to-date share price change of 5.88% [3] - The company currently pays a dividend of $0.36 per share, resulting in a dividend yield of 2.33%, which is lower than the Banks - Midwest industry's yield of 2.82% and higher than the S&P 500's yield of 1.48% [3] Dividend Performance - The current annualized dividend of 1st Source is$ 1.44, reflecting a 2.9% increase from the previous year [4] - Over the past five years, the company has increased its dividend four times, achieving an average annual increase of 5.14% [4] - The company's payout ratio stands at 26%, indicating that it distributes 26% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - Earnings growth for 1st Source appears solid, with the Zacks Consensus Estimate for 2025 projected at $5.82 per share, representing a year-over-year growth rate of 6.01% [5] Investment Appeal - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [6] - 1st Source is characterized as an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 1 (Strong Buy) [7]