Mercantile Bank Corporation (NASDAQ:MBWM) Shares to Pay Quarterly Dividend of $0.40

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

Mercantile Bank has raised its dividend payment by an average of 0.1% per year over the last three years and has increased its dividend every year for the last 14 years. Mercantile Bank has a payout ratio of 31.7% meaning its dividend is sufficiently covered by earnings. 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 Price Performance

Shares of Mercantile Bank stock traded up $0.62 on Tuesday, hitting $59.04. 201,153 shares of the company traded hands, compared to its average volume of 118,236. The stock has a market capitalization of $1.02 billion, a P/E ratio of 10.39 and a beta of 0.83. The company has a debt-to-equity ratio of 0.59, a quick ratio of 0.93 and a current ratio of 0.93. Mercantile Bank has a 52 week low of $42.88 and a 52 week high of $62.95. The business has a 50-day simple moving average of $59.88 and a 200 day simple moving average of $56.50.

Mercantile Bank (NASDAQ:MBWM) last released its earnings results on Tuesday, October 20th. The financial services provider reported $1.42 EPS for the quarter, topping the consensus estimate of $1.35 by $0.07. Mercantile Bank had a net margin of 24.75% and a return on equity of 13.66%. The firm had revenue of $73.20 million for the quarter, compared to the consensus estimate of $70.84 million. Research analysts expect that Mercantile Bank will post 5.71 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on the stock. Piper Sandler set a $65.00 price target on shares of Mercantile Bank in a report on Wednesday, July 22nd. Weiss Ratings upgraded shares of Mercantile Bank from a “buy (b)” rating to a “buy (a-)” rating in a research note on Friday, October 9th. Raymond James Financial started coverage on shares of Mercantile Bank in a report on Tuesday, September 1st. They set an “outperform” rating and a $65.00 price objective for the company. Keefe, Bruyette & Woods increased their price objective on shares of Mercantile Bank from $60.00 to $64.00 and gave the company an “outperform” rating in a report on Wednesday, July 22nd. Finally, Hovde Group lowered Mercantile Bank from an “outperform” rating to a “market perform” rating and set a $62.00 price objective for the company. in a research report on Wednesday, July 22nd. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $62.00.

About Mercantile Bank

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.