FRME (First Merchants) Dividend Payout Ratio: 0.35 (As of Mar. 2026) — Near Median

What is First Merchants Dividend Payout Ratio?

First Merchants FRME +1.65% 60 Dividend Payout Ratio is 0.35 as of Mar. 2026, which is 9% above its 10-year median of 0.32. GuruFocus rates FRME with a GF Score™ of 60/100 and a GF Value™ of $39.80 (Fairly Valued). The stock has 7 warning signs investors should review. Among 1,168 Banks companies, First Merchants ranks worse than 55.91% on this metric.

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. First Merchants's Dividend Payout Ratio for the months ended in Mar. 2026 was 0.35.

The historical rank and industry rank for First Merchants's Dividend Payout Ratio or its related term are showing as below:

FRME' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.26 Med: 0.32 Max: 10.4
Current: 0.36

During the past 13 years, the highest Dividend Payout Ratio of First Merchants was 10.40. The lowest was 0.26. And the median was 0.32.

FRME's Dividend Payout Ratio is ranked worse than
55.91% of 1168 companies
in the Banks industry
Industry Median: 0.32 vs FRME: 0.36

As of today (2026-06-25), the Dividend Yield % of First Merchants is 3.42%.

During the past 13 years, the highest Trailing Annual Dividend Yield of First Merchants was 5.12%. The lowest was 1.29%. And the median was 2.80%.

First Merchants's Dividends per Share for the months ended in Mar. 2026 was $0.36.

During the past 12 months, First Merchants's average Dividends Per Share Growth Rate was 2.90% per year. During the past 3 years, the average Dividends Per Share Growth Rate was 4.60% per year. During the past 5 years, the average Dividends Per Share Growth Rate was 6.70% per year. During the past 10 years, the average Dividends Per Share Growth Rate was 12.50% per year.

During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of First Merchants was 93.50% per year. The lowest was -64.80% per year. And the median was 10.20% per year.

The growth rate is calculated with least square regression.

For more information regarding to dividend, please check our Dividend Page.

* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.

First Merchants (NAS:FRME) Dividend Payout Ratio Explanation

In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.

First Merchants Dividend Payout Ratio Related Terms

First Merchants Dividend Payout Ratio Historical Data

* Premium members only.

The historical data trend for First Merchants's Dividend Payout Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

First Merchants Dividend Payout Ratio Chart

First Merchants Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

Dividend Payout Ratio

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0.30

0.34

0.40

0.37

First Merchants Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
Dividend Payout Ratio	Get a 7-Day Free Trial															0.37	0.37	0.36	0.37	0.35

FRME vs CUBI, TRMK, WAFD: Dividend Payout Ratio Comparison

For the Banks - Regional subindustry, First Merchants's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

First Merchants Dividend Payout Ratio vs Banks Industry

For the Banks industry and Financial Services sector, First Merchants's Dividend Payout Ratio distribution charts can be found below:

* The bar in red indicates where First Merchants's Dividend Payout Ratio falls into.

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60GF Score

First Merchants Corp FRME

Dividend Payout Ratio is just one metric. See GF Score™, valuation, warning signs, and more.

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First Merchants Dividend Payout Ratio Calculation

First Merchants's Dividend Payout Ratio for the fiscal year that ended in Dec. 2025 is calculated as

Dividend Payout Ratio	=	Dividends per Share (A: Dec. 2025 )	/	EPS without NRI (A: Dec. 2025 )
	=	1.43	/	3.89
	=	0.37

First Merchants's Dividend Payout Ratio for the quarter that ended in Mar. 2026 is calculated as

Dividend Payout Ratio	=	Dividends per Share (Q: Mar. 2026 )	/	EPS without NRI (Q: Mar. 2026 )
	=	0.36	/	1.03
	=	0.35

Frequently Asked Questions Learn more about Dividend Payout Ratio →

What does a Dividend Payout Ratio of 0.35 mean?

First Merchants (FRME) has a Dividend Payout Ratio of 0.35 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on First Merchants and its competitors. This is near median its historical median of 0.32. Over the past decade, First Merchants' Dividend Payout Ratio has ranged from 0.26 to 10.40. According to the industry distribution chart, First Merchants ranks #653 out of 1168 companies in the Banks industry, placing it in the top 55.9%.

Is First Merchants' Dividend Payout Ratio too high?

First Merchants' current Dividend Payout Ratio of 0.35 is near median its 10-year median of 0.32. Over the past 10 years, this metric has ranged from a low of 0.26 to a high of 10.40. The Banks industry median Dividend Payout Ratio is 0.32. First Merchants' value of 0.35 is 9.4% above this industry median. Based on the distribution chart, First Merchants ranks #653 out of 1168 companies in the Banks industry, which is below the industry midpoint. Overall, First Merchants has a GF Score™ of 60/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.

How does First Merchants' Dividend Payout Ratio compare to CUBI and TRMK?

According to the Banks industry distribution chart, First Merchants ranks #653 out of 1168 companies for Dividend Payout Ratio. This places First Merchants in the lower half of its industry. The industry median Dividend Payout Ratio is 0.32. First Merchants' value of 0.35 is 9.4% above this benchmark. Historically, First Merchants' own Dividend Payout Ratio has ranged from 0.26 to 10.40 over the past decade. While the company's 10-year median is 0.32 vs. the industry median of 0.32, First Merchants has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Dividend Payout Ratio for a Banks company?

The median Dividend Payout Ratio among Banks companies is 0.32, based on 1,168 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First Merchants's current Dividend Payout Ratio of 0.35 is 9.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Dividend Payout Ratio mean?

A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on First Merchants and its competitors. For the Banks industry, the median Dividend Payout Ratio is 0.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Merchants's current Dividend Payout Ratio is 0.35, which is near median its own 10-year median of 0.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is First Merchants stock overvalued right now?

Based on GuruFocus' analysis, First Merchants (FRME) is currently considered Fairly Valued. The stock's GF Value™ is $39.80, compared to a current price of $42.59 — trading 7% above its estimated fair value. The current Dividend Payout Ratio is 0.35, which is near median its 10-year median of 0.32 and 9.4% above the Banks industry median of 0.32. First Merchants' overall GF Score™ is 60/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Dividend Payout Ratio calculated?

Dividend Payout Ratio is calculated from a company's financial statements. For First Merchants (FRME), the current Dividend Payout Ratio is 0.35 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is First Merchants (FRME) Overvalued in 2026?

Based on GuruFocus' analysis, First Merchants stock appears to be overvalued. The current stock price of $42.59 is trading 7% above its estimated GF Value™ of $39.80. GuruFocus considers First Merchants to be Fairly Valued.

Key valuation signals for FRME:

Dividend Payout Ratio: 0.35 (near median its 10-year median of 0.32)
GF Value™: $39.80 vs. price of $42.59 (7% above fair value)
GF Score™: 60/100 with 7 warning signs
Industry Position: 9.4% above the Banks median (#653 of 1168)

No single metric tells the full story. See the FRME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

First Merchants Business Description

Industry Financial Services Banks

Comparable Companies CUBI TRMK WAFD BBT FBNC NBTB FBK INTR BUSE TBBK SHSE:600036 SGX:D05 MIL:UCG NSE:HDFCBANK XPAR:BNP MIL:ISP TSE:8411 SAU:1120 NSE:ICICIBANK XMAD:CABK

Address 200 East Jackson Street, P.O. BOX 792, Muncie, IN, USA, 47305-2814

Website https://www.firstmerchants.com

First Merchants Corp, through its subsidiaries, provides its customers with financial services delivered locally by bankers. It offers personal banking, business banking, real estate mortgage lending, cash management services, brokerage, wealth management, and insurance. The company reports in only one segment, which is community banking.

60GF Score

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$42.59

Price

$39.80

GF Value

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