Dividend Update for First Merchants: Key Details Ahead of Ex-Dividend Date on Sep 5, 2025

First Merchants Corporation (FRME) has announced a cash dividend of $0.36 per share, to be paid on Sep 19, 2025, to shareholders of record as of Sep 5, 2025. The dividend was declared on Aug 15, 2025, marking a notable increase compared to the 10-year average dividend of approximately $0.2126 per share. This represents a significant step up, demonstrating the company’s confidence in its financial position and commitment to rewarding shareholders. The latest dividend, issued on Jun 20, 2025, also carried the same amount of $0.36 per share, indicating a consistent and strengthening payout trend. With a dividend yield of 3.5% and an annualized payout of $1.44, First Merchants continues to offer a compelling income proposition for long-term investors.

Recent market activity surrounding FRME has been mixed. On Aug 29, 2025, traders noted bearish technical indicators on the company’s 15-minute chart, including a MACD Death Cross and a narrowing of Bollinger Bands. A bearish Marubozu candle further signaled potential downward pressure. Meanwhile, institutional investors have shown growing confidence in the stock. In the first quarter of 2025, Wellington Management Group LLP acquired 66,259 shares valued at around $2.68 million, while Nuveen LLC and OneAscent Financial Services LLC significantly increased their holdings. These purchases suggest strong institutional backing for the company’s long-term prospects.

Analysts have also adjusted their outlooks. On May 24, 2025, Wall Street Zen upgraded the stock from “sell” to “hold,” while Piper Sandler recently cut its price target from $49.00 to $48.00 but maintained an “overweight” rating. The stock currently carries an average analyst rating of “Buy,” with a consensus price target of $48.25. Over the past week, FRME shares have seen modest declines, trading down 0.2% as of late on Sep 1, 2025, opening at $41.52. With a market cap of $2.4 billion, a P/E ratio of 10.76, and a beta of 1.08, the stock remains attractively valued relative to broader market benchmarks.

Recent earnings data also painted a positive picture for First Merchants. The company reported Q2 EPS of $0.98, beating estimates by $0.04, with revenue of $170.52 million slightly below forecasts. A return on equity of 9.88% and a net margin of 21.35% highlight the company’s strong operational efficiency. Looking ahead, analysts project full-year earnings of $3.79 per share, reflecting continued confidence in the business model.

As of late, the most influential developments for FRME have centered on institutional buying, revised analyst ratings, and bearish short-term technical indicators. While the technicals may signal caution for traders, the fundamentals and institutional activity suggest a more positive long-term outlook.

Investors should note that the ex-dividend date for this dividend is Sep 5, 2025, meaning that any purchase of FRME shares after this date will not qualify for the upcoming $0.36 per share payout. Those looking to receive the dividend must ensure they are shareholders of record by that date.