Mercantile Bank Corp

MBWM

Market cap $708M

Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Mercantile Bank (MBWM) have what it takes?

Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Mercantile Bank (MBWM) have what it takes?

GRAND RAPIDS, Mich. , Sept. 30, 2025 /PRNewswire/ -- Mercantile Bank Corporation (NASDAQ: MBWM) will host a conference call and webcast at 10 a.m.

Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Mercantile Bank (MBWM) have what it takes?

I focus on companies with consistent annual dividend increases, as they signal financial strength and reliable cash flow for long-term investors. This week's highlighted stocks averaged a 7% dividend increase and an 11-year streak, with Autoliv standing out for a 21% hike. My strategy prioritizes holdings that outperform the Schwab U.S. Dividend Equity ETF (SCHD) and deliver both income and capital appreciation.

Mercantile Bank (MBWM) has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Mercantile Bank (MBWM) have what it takes?

Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Mercantile Bank (MBWM) have what it takes?

Mercantile Bank (MBWM) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).

Mercantile Bank's main challenge remains weak deposit growth, limiting its ability to capitalize on strong loan demand and keeping the loan-to-deposit ratio near 100%. Management is mitigating interest rate risk by increasing fixed-rate securities, which should gradually boost net interest margin as low-yield bonds mature and are reinvested. The bank maintains a solid dividend yield (3.17%) with sustainable payout and a track record of growth, but remains highly cyclical and exposed to economic downturns.