FRME vs HSBC: Which Is the Better Dividend Stock?
As of Oct 18, 2026, FRME and HSBC are closely matched. HSBC offers the higher yield at 3.97%, FRME has the higher dividend-safety score, and HSBC looks like the better value (its fair-value estimate is 44% above its share price).
Key facts: FRME vs HSBC
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, HSBC Holdings plc (HSBC) has the higher forward dividend yield at 3.97%, versus 3.74% for First Merchants Corporation (FRME).
- As of Oct 18, 2026, SmarterDividends grades FRME's dividend safety A (88/100) and HSBC's B (72/100).
- By SmarterDividends' count as of Oct 18, 2026, FRME has raised its dividend for 14 consecutive years and HSBC for 0.
- As of Oct 18, 2026, FRME pays out 47% of its earnings as dividends and HSBC pays out 54%.
- As of Oct 18, 2026, FRME's fair-value estimate is 43% below its share price and HSBC's fair-value estimate is 44% above its share price, so HSBC looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "FRME vs HSBC: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/frme-vs-hsbc
| Metric | FRME | HSBC |
|---|---|---|
| Forward yield | 3.74% | 3.97% |
| 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% | 242% |
| Dividend safety score | 88 (A) | 72 (B) |
| Fair value estimate | $22.57 | $135.99 |
| Upside to fair value | -43% | +44% |
| Frequency | quarterly | quarterly |
| Market cap | $2.5B | $323.4B |
| P/E ratio | 12.7 | 13.5 |
Higher yield
HSBC
3.97%
Safer dividend
FRME
Grade A
Faster growth
FRME
6.6%
Better value
HSBC
+44% upside
FRME vs HSBC — FAQ
Is FRME or HSBC a better dividend stock?
FRME and HSBC are closely matched. HSBC has the higher yield; FRME scores better on safety.
Which has a higher dividend yield, FRME or HSBC?
HSBC has the higher forward dividend yield at 3.97%, versus 3.74% for FRME.
Is FRME or HSBC safer?
FRME has the higher dividend-safety score (88/100 vs 72/100), reflecting stronger payout coverage and dividend-growth history.
Is FRME or HSBC better value right now?
As of Oct 18, 2026, HSBC looks like the better value: its fair-value estimate is 44% above its share price (undervalued). For FRME, its fair-value estimate is 43% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.