First Merchants (US:FRME) ZACKSยท2025-03-05 17:50Company Overview - First Merchants (FRME) is headquartered in Muncie and operates in the Finance sector, with a stock price change of 6.54% since the beginning of the year [3] - The current dividend payout is $0.35 per share, resulting in a dividend yield of 3.29%, which is higher than the Banks - Midwest industry's yield of 2.99% and the S&P 500's yield of 1.57% [3] Dividend Analysis - The annualized dividend of First Merchants is currently $1.40, reflecting a 0.7% 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 7.79% [4] - The current payout ratio stands at 40%, indicating that the company distributes 40% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, First Merchants anticipates solid earnings growth, 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 Appeal - First Merchants is viewed as an attractive dividend investment, supported by a Zacks Rank of 1 (Strong Buy), indicating a compelling investment opportunity [7]