Mercantile Bank Corporation
MBWMFinancial Services · Stock · quarterly payer
Forward Yield
2.60%
Annual Dividend
$1.56
Payout Ratio
27%
5-Yr Growth
6.0%
Ex-Date
Sep 4, 2026
Frequency
Quarterly
Summary
As of September 2026, Mercantile Bank Corporation (MBWM) yields 2.60% ($1.56 per share annually), with a blended fair-value estimate of $78.17 — +30% upside, so it screens as undervalued. Dividend safety grade: A (84/100). 14 years of dividend growth.
Is MBWM a good dividend stock?
YesMercantile Bank Corporation (MBWM) pays a quarterly dividend yielding 2.60% ($1.56/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 (27%)
- Strong 6.0% 5-yr dividend growth
- 75% total price return over 5 years
- Top-tier dividend safety score
Risks
- Cut its dividend in 2009
Key Data
- Dividend Yield
- 2.60%
- Payout Ratio
- 27%
- Annual Dividend
- $1.56
- 5-Yr Avg Growth
- 6.0%
- Ex-Dividend Date
- Sep 4, 2026
- Years of Growth
- 14
- Frequency
- quarterly
- Beta
- 0.81
- Market Cap
- $1.0B
- P/E Ratio
- 10.6
- 5-Yr Total Return
- 75%
- 52-Week Range
- $42.75 – $62.95
- Dividend Safety
- A · 84/100
- Ever Cut?
- Yes (2009)
Frequently Asked Questions
MBWM Price — Last 12 Months
Daily close
Price Return
1 Year
+37%
3 Years
+82%
5 Years
+75%
52-Week Range
$42.75 – $62.95
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is MBWM worth?
Undervaluedlow confidenceOur blended fair-value estimate for Mercantile Bank Corporation is $78.17 per share, versus a market price of $60.03. That implies 30% of upside — a margin of safety of about 23%.
Fair Value
$78.17
Current Price
$60.03
Upside
+30%
Margin of Safety
23%
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 11.3% annual free-cash-flow growth. We model 11.0% — so the price already assumes faster growth than we think is likely.
Assumptions: 8.3% discount rate (CAPM), 11.0% stage-1 growth, 2.5% terminal growth, $5.69 EPS, $1.56 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
MBWM 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 |
|---|---|---|---|
| Sep 4, 2026 | — | $0.4000 | regular |
| Jun 5, 2026 | — | $0.3900 | regular |
| Mar 6, 2026 | — | $0.3900 | regular |
| Dec 5, 2025 | — | $0.3800 | regular |
| Sep 5, 2025 | — | $0.3800 | regular |
| Jun 6, 2025 | — | $0.3700 | regular |
| Mar 7, 2025 | — | $0.3700 | regular |
| Dec 6, 2024 | — | $0.3600 | regular |
| Sep 6, 2024 | — | $0.3600 | regular |
| Jun 7, 2024 | — | $0.3500 | regular |
| Feb 29, 2024 | — | $0.3500 | regular |
| Nov 30, 2023 | — | $0.3400 | regular |
| Aug 31, 2023 | — | $0.3400 | regular |
| Jun 1, 2023 | — | $0.3300 | regular |
Income Calculator
At $1.56 / yr per share
