FRME vs HSBC: Which Is the Better Dividend Stock?
As of July 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 4.34%, FRME has the higher dividend-safety score, and FRME trades at the larger discount to fair value (+128%).
| Metric | FRME | HSBC |
|---|---|---|
| Forward yield | 4.34% | 3.63% |
| Annual dividend | $1.88 | $3.75 |
| Payout ratio | 47% | 62% |
| Years of growth | 14 yr | 0 yr |
| 5-yr dividend growth | 6.6% | -13.8% |
| 5-yr total return | 5% | 291% |
| Dividend safety score | 84 (A) | 70 (B) |
| Fair value estimate | $98.53 | $126.29 |
| Upside to fair value | +128% | +22% |
| Frequency | quarterly | quarterly |
| Market cap | $2.7B | $356.6B |
| P/E ratio | 13.7 | 17.2 |
Higher yield
FRME
4.34%
Safer dividend
FRME
Grade A
Faster growth
FRME
6.6%
Better value
FRME
+128% upside
FRME vs HSBC — FAQ
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