First Mid Bancshares (FMBH) is a Top Dividend Stock Right Now: Should You Buy?

Company Overview - First Mid Bancshares (FMBH) is a bank holding company based in Mattoon, operating in the Finance sector with a year-to-date share price change of -3.99% [3] - The company currently pays a dividend of $0.24 per share, resulting in a dividend yield of 2.72%, which is lower than the Banks - Northeast industry's yield of 2.89% but higher than the S&P 500's yield of 1.57% [3] Dividend Performance - The annualized dividend of First Mid Bancshares is $0.96, reflecting a 2.1% 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 4.04% [4] - The current payout ratio stands at 28%, indicating that the company distributes 28% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - First Mid Bancshares is projected to experience earnings growth in the current fiscal year, with the Zacks Consensus Estimate for 2025 at $3.61 per share, representing a year-over-year growth rate of 3.74% [5] Investment Considerations - Dividends are favored by investors for various reasons, including improving stock investing profits and providing tax advantages [6] - Established firms with secure profits are typically viewed as the best dividend options, while high-growth businesses and tech start-ups rarely offer dividends [7] - First Mid Bancshares is recognized as an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [7]