Why First Mid Bancshares (FMBH) is a Top Dividend Stock for Your Portfolio

Core Insights - The focus of income investors is on generating consistent cash flow from liquid investments, primarily through dividends [1][2] 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 -12.3% [3] - The company currently pays a dividend of $0.24 per share, resulting in a dividend yield of 2.97%, which is higher than the industry yield of 2.74% and the S&P 500 yield of 1.65% [3] Dividend Analysis - The annualized dividend of FMBH is $0.96, reflecting a 2.1% increase from the previous year [4] - Over the past five years, FMBH has increased its dividend four times, averaging an annual increase of 4.04% [4] - The current payout ratio for FMBH is 28%, indicating that it pays out 28% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, FMBH anticipates solid earnings growth, 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 rarely offer dividends [7] - FMBH is considered an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [7]