First Merchants Corporation
FRMEFinancial Services · Stock · quarterly payer
Forward Yield
3.60%
Annual Dividend
$1.48
Payout Ratio
42%
5-Yr Growth
6.7%
Ex-Date
Jun 5, 2026
Frequency
Quarterly
Is FRME a good dividend stock?
YesFirst Merchants Corporation (FRME) pays a quarterly dividend yielding 3.60% ($1.48/yr), with 15 years of growth and a dividend-safety grade of A. It scores well across payout coverage, growth history and safety — a dependable income holding.
Advantages
- 15 consecutive years of dividend growth
- Comfortable payout ratio (42%)
- Strong 6.7% 5-yr dividend growth
- Top-tier dividend safety score
Risks
- Cut its dividend in 2010
- Share price is down over the past 5 years
Key Data
- Dividend Yield
- 3.60%
- Payout Ratio
- 42%
- Annual Dividend
- $1.48
- 5-Yr Avg Growth
- 6.7%
- Ex-Dividend Date
- Jun 5, 2026
- Years of Growth
- 15
- Frequency
- quarterly
- Beta
- 0.86
- Market Cap
- $2.6B
- P/E Ratio
- 12.1
- 5-Yr Total Return
- -4%
- 52-Week Range
- $34.66 – $43.22
- Dividend Safety
- A · 87/100
- Ever Cut?
- Yes (2010)
Frequently Asked Questions
FRME Price — Last 12 Months
Daily close
Price Return
1 Year
+4%
3 Years
+41%
5 Years
-4%
52-Week Range
$34.66 – $43.22
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is FRME worth?
Undervaluedlow confidenceOur blended fair-value estimate for First Merchants Corporation is $94.12 per share, versus a market price of $40.62. That implies 132% of upside — a margin of safety of about 57%.
Fair Value
$94.12
Current Price
$40.62
Upside
+132%
Margin of Safety
57%
How we get there
Discounted cash flow
Discounts projected free cash flow back to today.
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about -0.6% annual free-cash-flow growth. We model 18.7% — below our estimate, leaving room for upside if the business executes.
Assumptions: 8.6% discount rate (CAPM), 18.7% stage-1 growth, 2.5% terminal growth, $3.39 EPS, $1.48 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
FRME Dividend Safety Score
Very Safe
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Jun 5, 2026 | — | $0.3700 | regular |
| Mar 6, 2026 | — | $0.3600 | regular |
| Dec 5, 2025 | — | $0.3600 | regular |
| Sep 5, 2025 | — | $0.3600 | regular |
| Jun 6, 2025 | — | $0.3600 | regular |
| Mar 7, 2025 | — | $0.3500 | regular |
| Dec 6, 2024 | — | $0.3500 | regular |
| Sep 6, 2024 | — | $0.3500 | regular |
| Jun 7, 2024 | — | $0.3500 | regular |
| Feb 29, 2024 | — | $0.3400 | regular |
| Nov 30, 2023 | — | $0.3400 | regular |
| Aug 31, 2023 | — | $0.3400 | regular |
| Jun 1, 2023 | — | $0.3400 | regular |
| Mar 2, 2023 | — | $0.3200 | regular |
Income Calculator
At $1.48 / yr per share
