Mercantile Bank (US:MBWM) ZACKS·2025-10-16 16:45Company Overview - Mercantile Bank (MBWM) is headquartered in Grand Rapids and has experienced a price change of 2.23% this year [3] - The company is currently paying a dividend of $0.38 per share, resulting in a dividend yield of 3.34%, which is higher than the Banks - Midwest industry's yield of 3.28% 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 past 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 and Future Outlook - The Zacks Consensus Estimate for 2025 projects earnings of $5.23 per share, representing a year-over-year growth rate of 6.09% [5] - Future dividend growth will depend on earnings growth and the payout ratio [4] Investment Considerations - Mercantile Bank is considered a strong dividend play and is currently rated with a Zacks Rank of 3 (Hold) [6] - The company is positioned as a compelling investment opportunity, especially for income investors [6]