Mercantile Bank Corporation (NASDAQ:MBWM) Shareholders to Collect $0.40 Quarterly Dividend

Key Points

• Mercantile Bank declared a quarterly dividend of $0.40 per share, payable December 16 to shareholders of record on December 4. The dividend equates to $1.60 annually and a 2.7% yield.
• The bank has increased its dividend for 14 consecutive years, with a 31.7% payout ratio. Analysts expect future earnings to comfortably cover the annual dividend.
• Mercantile Bank reported quarterly EPS of $1.42, exceeding estimates of $1.35, while revenue of $73.20 million also surpassed expectations. Institutional investors own 58.63% of the company.

Mercantile Bank Corporation (NASDAQ:MBWM - Get Free Report) announced a quarterly dividend on Tuesday, October 20th. Investors of record on Friday, December 4th will be given a dividend of $0.40 per share by the financial services provider on Wednesday, December 16th. This represents a $1.60 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend is Friday, December 4th.

Mercantile Bank has raised its dividend by an average of 0.1% per year over the last three years and has increased its dividend annually for the last 14 consecutive years. Mercantile Bank has a dividend payout ratio of 31.7% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Mercantile Bank to earn $5.79 per share next year, which means the company should continue to be able to cover its $1.60 annual dividend with an expected future payout ratio of 27.6%.

Mercantile Bank Stock Performance

NASDAQ:MBWM traded up $0.62 during mid-day trading on Tuesday, reaching $59.04. The company's stock had a trading volume of 201,153 shares, compared to its average volume of 118,236. Mercantile Bank has a 12-month low of $42.88 and a 12-month high of $62.95. The firm's fifty day moving average price is $59.88 and its two-hundred day moving average price is $56.50. The company has a current ratio of 0.93, a quick ratio of 0.93 and a debt-to-equity ratio of 0.59. The stock has a market cap of $1.02 billion, a P/E ratio of 10.39 and a beta of 0.83.

Mercantile Bank (NASDAQ:MBWM - Get Free Report) last posted its earnings results on Tuesday, October 20th. The financial services provider reported $1.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.35 by $0.07. The business had revenue of $73.20 million for the quarter, compared to analysts' expectations of $70.84 million. Mercantile Bank had a net margin of 24.75% and a return on equity of 13.66%. On average, equities analysts forecast that Mercantile Bank will post 5.71 EPS for the current fiscal year.

Hedge Funds Weigh In On Mercantile Bank

Institutional investors have recently made changes to their positions in the business. Counterpoint Mutual Funds LLC purchased a new position in shares of Mercantile Bank in the third quarter valued at about $673,000. Sequoia Financial Advisors LLC bought a new position in shares of Mercantile Bank in the second quarter worth about $443,000. Integrated Wealth Concepts LLC bought a new position in shares of Mercantile Bank in the second quarter worth about $54,000. Arizona State Retirement System grew its position in shares of Mercantile Bank by 6.8% during the second quarter. Arizona State Retirement System now owns 4,528 shares of the financial services provider's stock worth $260,000 after purchasing an additional 287 shares in the last quarter. Finally, Old Mission Investment Co LLC purchased a new stake in shares of Mercantile Bank during the second quarter worth about $229,000. Institutional investors own 58.63% of the company's stock.

Mercantile Bank Company Profile

Mercantile Bank Corporation is a bank holding company headquartered in Grand Rapids, Michigan. Through its subsidiary, Mercantile Bank, the company provides commercial and retail banking services to businesses, professionals and individuals. The bank primarily serves communities across Michigan, with a focus on relationship-based banking and locally oriented financial services.

Mercantile Bank offers a range of deposit products, including checking, savings, money market and certificate of deposit accounts.

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