Mercantile Bank (US:MBWM) ZACKSยท2025-09-30 16:46Company Overview - Mercantile Bank (MBWM) is headquartered in Grand Rapids and has experienced a price change of 0.97% this year [3] - The company currently pays a dividend of $0.38 per share, resulting in a dividend yield of 3.38%, which is higher than the Banks - Midwest industry's yield of 3.04% and the S&P 500's yield of 1.49% [3] Dividend Performance - The current annualized dividend of Mercantile Bank is $1.52, reflecting a 7% increase from the previous year [4] - Over the last five years, the company has increased its dividend five times, achieving an average annual increase of 6.33% [4] - The current payout ratio is 29%, indicating that the company paid out 29% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate projects earnings of $5.23 per share, representing a 6.09% increase from the previous year [5] - The company is positioned as a strong dividend play, appealing to income investors due to its solid earnings growth expectations [6] Investment Considerations - High-growth firms and tech start-ups typically do not offer dividends, while established companies like Mercantile Bank are viewed as better dividend options [6] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a stable investment opportunity [6]