First Merchants Corp Preferred Stock Dividend Announcement

Investment Alert: First Merchants Corp announces its preferred stock will trade ex-dividend on 1/31/25, affecting FRMEP shares. This dividend results in a yield exceeding the financial sector average, signaling potential stock price adjustments.

Date: 29-01-2025

AI Rating: 6

**Dividend Impact on Stock Prices**: First Merchants Corp's Series A non-cumulative preferred shares, symbol FRMEP, are set to trade ex-dividend on 1/31/25. Shareholders will receive a quarterly dividend of $0.4688, representing approximately 1.82% of the stock’s recent price of $25.82. This implies that the share price of FRMEP is anticipated to open about 1.82% lower on the ex-dividend date, all else being equal.

The annualized yield from this dividend is approximately 7.26%, which is significantly higher than the average yield of 6.45% in the financial preferred stock sector. Such a yield can attract income-focused investors looking for stable cash flows, potentially sustaining demand for the stock post-dividend.

**Market Reactions and Performance**: The report also highlights that FRMEP shares were down approximately 0.1% in trading on the day, while common shares of First Merchants Corp (symbol FRME) were up by about the same percentage. This indicates a somewhat mixed market sentiment towards the preferred stock in the short term.

Stocks: FRME