First Merchants (FRME) Could Be a Great Choice

Company Overview - First Merchants (FRME) is headquartered in Muncie and operates in the Finance sector, with a stock price change of 11.83% since the beginning of the year [3] - The company currently pays a dividend of $0.35 per share, resulting in a dividend yield of 3.14%, which is higher than the Banks - Midwest industry's yield of 2.9% and the S&P 500's yield of 1.53% [3] Dividend Analysis - The current annualized dividend of First Merchants is$ 1.40, reflecting a 0.7% increase from the previous year [4] - Over the past five years, First Merchants has increased its dividend four times, achieving an average annual increase of 7.79% [4] - The company's current payout ratio is 40%, indicating that it pays out 40% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - Earnings growth for First Merchants appears solid, with the Zacks Consensus Estimate for 2025 projected at $3.79 per share, representing a year-over-year growth rate of 9.22% [5] Investment Opportunity - First Merchants is considered a compelling investment opportunity due to its attractive dividend yield and strong Zacks Rank of 1 (Strong Buy) [7]