First Merchants Corporation
FRMEFinancial Services · Stock · quarterly payer
Forward Yield
4.34%
Annual Dividend
$1.88
Payout Ratio
47%
5-Yr Growth
6.6%
Ex-Date
Jul 30, 2026
Frequency
Quarterly
Summary
As of July 2026, First Merchants Corporation (FRME) yields 4.34% ($1.88 per share annually), with a blended fair-value estimate of $98.53 — +128% upside, so it screens as undervalued. Dividend safety grade: A (84/100). 14 years of dividend growth.
Is FRME a good dividend stock?
YesFirst Merchants Corporation (FRME) pays a quarterly dividend yielding 4.34% ($1.88/yr), with 14 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
- 14 consecutive years of dividend growth
- Comfortable payout ratio (47%)
- Strong 6.6% 5-yr dividend growth
- Top-tier dividend safety score
Risks
- Cut its dividend in 2010
Key Data
- Dividend Yield
- 4.34%
- Payout Ratio
- 47%
- Annual Dividend
- $1.88
- 5-Yr Avg Growth
- 6.6%
- Ex-Dividend Date
- Jul 30, 2026
- Years of Growth
- 14
- Frequency
- quarterly
- Beta
- 0.85
- Market Cap
- $2.7B
- P/E Ratio
- 13.7
- 5-Yr Total Return
- 5%
- 52-Week Range
- $34.66 – $45.33
- Dividend Safety
- A · 84/100
- Ever Cut?
- Yes (2010)
Frequently Asked Questions
FRME Price — Last 12 Months
Daily close
Price Return
1 Year
+4%
3 Years
+45%
5 Years
+5%
52-Week Range
$34.66 – $45.33
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 $98.53 per share, versus a market price of $43.18. That implies 128% of upside — a margin of safety of about 56%.
Fair Value
$98.53
Current Price
$43.18
Upside
+128%
Margin of Safety
56%
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 -2.2% annual free-cash-flow growth. We model 18.7% — below our estimate, leaving room for upside if the business executes.
Assumptions: 8.5% discount rate (CAPM), 18.7% stage-1 growth, 2.5% terminal growth, $3.11 EPS, $1.88 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 $1.88 / yr per share
