Printed on October 14, 2025, by Felix Martinez
Excessive-yield shares pay out dividends which are considerably increased than the market common. For instance, the S&P 500’s present yield is just ~1.1%, a product of file highs in inventory indices to date in 2025.
Excessive-yield shares will be significantly useful in shoring up revenue after retirement. A $120,000 funding in shares with a mean dividend yield of 5% creates a mean of $500 a month in dividends.
We’ve created a spreadsheet of shares (and carefully associated REITs and MLPs, and so on.) with dividend yields of 5% or extra…
You’ll be able to obtain your free full listing of all excessive dividend shares with 5%+ yields (together with necessary monetary metrics equivalent to dividend yield and payout ratio) by clicking on the hyperlink beneath:
Subsequent on our listing of excessive dividend shares to evaluate is Horizon Bancorp, Inc. (HBNC).
Enterprise Overview
Horizon is a financial institution holding firm for Horizon Financial institution, which provides a various vary of business and retail banking companies and merchandise.
It provides checking, financial savings, cash market accounts, certificates of deposit, retirement accounts, numerous sorts of shopper and industrial loans, insurance coverage, and extra.
Horizon operates in Indiana and Michigan and was based in 1873.
Supply: Investor presentation
The financial institution reported its second-quarter earnings on July 23, 2025, and the outcomes have been considerably improved from the prior quarter.
Supply: Investor presentation
The corporate reported robust second-quarter 2025 outcomes, with web revenue of $20.6 million, or $0.47 per diluted share, up 26% year-over-year and $0.03 above estimates. Income rose 26% to $70.3 million, pushed by higher-yielding loans and efficient deposit value administration. The online curiosity margin expanded to three.23%, marking the seventh straight quarterly improve, whereas mortgage progress rose 6.2% annualized, led by industrial lending. Credit score high quality remained wonderful with minimal charge-offs at 0.02%, and the effectivity ratio held regular at 59.5%. Deposits declined 1.1% because the financial institution continued to handle out higher-cost time deposits.
As of June 30, 2025, Horizon’s whole belongings stood at $7.7 billion, with tangible ebook worth per share climbing to $14.32. Capital ranges remained robust, with a Tier 1 ratio of 12.52% and whole capital ratio of 14.48%. CEO Thomas Prame highlighted continued operational energy and margin enlargement, noting a 58% year-over-year improve in EPS for the primary half of 2025. Trying forward, Horizon expects sustained earnings progress supported by prudent expense management, regular mortgage demand, and improved funding prices, positioning the financial institution to ship constant shareholder returns via the rest of 2025.
Development Prospects
Horizon’s earnings progress has been uneven to say the least. The financial institution has managed to spice up its earnings over time; nevertheless, up to now decade, there have been three years of declining earnings, together with final 12 months.
We anticipate to see 8% progress from this 12 months’s base of $1.42.
Supply: Investor presentation
If that is to occur, Horizon is prone to depend on mortgage progress, which it has been concentrating on in latest quarters.
In Q2, the financial institution expanded its mortgage portfolio by $76 million, pushed by progress in industrial actual property and industrial and industrial (C&I) loans.
Aggressive Benefits & Recession Efficiency
Like different banks, Horizon actually doesn’t have any aggressive benefits. We word that each one banks usually provide the identical set of services, so small banks like Horizon depend on model loyalty and workplace location comfort for buyer retention. Nonetheless, we word that these are free benefits at finest, much like these of different banks.
Moreover, like different banks, Horizon is vulnerable to recessionary intervals, and we anticipate that Horizon’s earnings will probably undergo through the subsequent interval of financial weak spot.
To its credit score, the corporate carried out comparatively strongly through the earlier main financial downturn, the Nice Recession of 2008-2009:
- 2008 earnings-per-share: $0.54
- 2009 earnings-per-share: $0.47
- 2010 earnings-per-share: $0.54
Horizon’s wonderful credit score high quality will serve it effectively through the subsequent recession, however the truth stays that no financial institution has management over mortgage demand throughout recessions, or certainly debtors which are unable to pay.
With Horizon struggling lately to develop earnings throughout a interval of robust financial progress, we’re cautious concerning the financial institution through the subsequent recession.
Dividend Evaluation
Horizon has managed to spice up its dividend by a mean of virtually 11% yearly up to now decade, which is extraordinarily robust by the requirements of the banking group. Nonetheless, it has not elevated its dividend over the previous two years. We’re not anticipating a dividend improve this 12 months both. Though the corporate has a low payout ratio of 34%,
The present dividend of 64 cents per share yearly is lower than half of earnings, so we imagine it’s secure for the foreseeable future. We imagine that Horizon’s capability to lift the dividend is considerably restricted, however we additionally assume that small will increase are probably within the playing cards for the approaching years.
The yield could be very robust at greater than 4%, a results of the robust dividend progress, but in addition a comparatively stagnant share worth. Total, we respect the yield and the relative security of the payout, however we see the chance of enormous will increase being muted.
Remaining Ideas
We view Horizon as a robust revenue inventory, providing a comparatively secure dividend and room for small will increase going ahead. We word the dearth of aggressive benefits and susceptibility to recession, however the latter isn’t presently a difficulty.
We encourage buyers to look at the online curiosity margin, because it’s a weak level for Horizon in the meanwhile when it comes to earnings, which has a direct influence on its capability to lift the dividend.
If you’re all in favour of discovering high-quality dividend progress shares and/or different high-yield securities and revenue securities, the next Certain Dividend assets will probably be helpful:
Excessive-Yield Particular person Safety Analysis
Different Certain Dividend Assets
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