FRME vs HSBC: Which Is the Better Dividend Stock?
As of September 2026, FRME (First Merchants Corporation) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. FRME offers the higher yield at 3.52%, FRME has the higher dividend-safety score, and FRME trades at the larger discount to fair value (+128%).
| Metric | FRME | HSBC |
|---|---|---|
| Forward yield | 3.52% | 3.50% |
| Annual dividend | $1.48 | $3.75 |
| Payout ratio | 47% | 54% |
| Years of growth | 14 yr | 0 yr |
| 5-yr dividend growth | 6.6% | -13.8% |
| 5-yr total return | 1% | 310% |
| Dividend safety score | 88 (A) | 72 (B) |
| Fair value estimate | $95.76 | $136.26 |
| Upside to fair value | +128% | +27% |
| Frequency | quarterly | quarterly |
| Market cap | $2.6B | $366.9B |
| P/E ratio | 13.5 | 15.3 |
Higher yield
FRME
3.52%
Safer dividend
FRME
Grade A
Faster growth
FRME
6.6%
Better value
FRME
+128% upside
FRME vs HSBC — FAQ
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