Printed on November twelfth, 2025 by Felix Martinez
Excessive-yield shares pay out dividends which are considerably greater than the market common. For instance, the S&P 500’s present yield is just ~1.2%.
Excessive-yield shares could be significantly helpful in supplementing revenue after retirement. A $120,000 funding in shares with a median dividend yield of 5% creates a median of $500 a month in dividends.
Midland States Bancorp (MSBI) is a part of our ‘Excessive Dividend 50’ collection, which covers the 50 highest-yielding shares within the Positive Evaluation Analysis Database.
We now have created a spreadsheet of shares (and carefully associated REITs, MLPs, and many others.) with dividend yields of 5% or extra.
You possibly can obtain your free full record of all securities with 5%+ yields (together with necessary monetary metrics corresponding to dividend yield and payout ratio) by clicking on the hyperlink beneath:
Subsequent on our record of high-dividend shares to assessment is Midland States Bancorp (MSBI).
Enterprise Overview
Midland States Bancorp, Inc. is a community-based monetary holding firm headquartered in Effingham, Illinois. By means of its subsidiary, Midland States Financial institution, the corporate gives a full vary of economic and shopper banking companies, together with enterprise lending, mortgage origination, gear financing, and deposit merchandise.
Midland additionally affords wealth administration, belief and property companies, funding administration, insurance coverage, and monetary planning options. As of September 30, 2025, the corporate held roughly $6.9 billion in complete property and $4.36 billion in wealth administration property underneath administration.
Midland operates primarily in Illinois and the Midwest, specializing in constructing long-term consumer relationships and sustaining robust neighborhood ties. The corporate’s technique emphasizes regular mortgage progress, disciplined credit score administration, and diversification throughout industrial and shopper segments. Current initiatives embrace tightening underwriting requirements, exiting higher-risk lending areas corresponding to gear finance, and bettering general asset high quality.
With a strong capital place and a rising wealth administration platform, Midland continues to place itself for sustainable, lower-risk profitability.
Supply: Investor Relations
The corporate reported third-quarter 2025 web revenue of $5.3 million, or $0.24 per share, down from $9.8 million within the prior quarter and $18.2 million a yr earlier. Outcomes have been impacted by a $15 million provision for credit score losses within the firm’s gear finance portfolio. Nevertheless, the online curiosity margin improved to three.79% from 3.56%, and nonperforming property declined to 1.02% of complete property.
CEO Jeffrey G. Ludwig stated the corporate is specializing in decreasing downside loans and strengthening its steadiness sheet. Midland stopped originating new gear finance loans to restrict threat and redeemed $50.75 million in subordinated notes. The widespread fairness tier 1 ratio rose to 9.4%, exhibiting improved capital energy.
Group banking and wealth administration remained strong, with file wealth administration income of $8 million and industrial deposit progress of $70 million. Whole loans declined to $4.87 billion as Midland lowered publicity to higher-risk property. The corporate expects decrease funding prices and stronger margins transferring ahead.
Supply: Investor Relations
Development Prospects
Midland States Bancorp has demonstrated regular long-term progress pushed by strategic acquisitions and disciplined growth. Since 2009, the corporate has acquired seven smaller banks, serving to it develop its asset base by a median of 12% yearly over the previous 9 years.
Between 2015 and 2023, earnings per share elevated by almost 7% per yr, supported by diversified income streams and a rising wealth administration platform. Though Midland reported a loss in 2024 as a result of giant mortgage charge-offs and elevated deposit prices, the corporate has since strengthened its credit score high quality and capital place, positioning itself for a return to constant profitability.
Wanting forward, Midland is predicted to learn from a extra favorable rate of interest surroundings, which ought to develop its web curiosity margin and help stronger earnings. Administration’s choice to tighten underwriting requirements and cut back publicity to higher-risk loans enhances long-term stability. Whereas the corporate’s previous earnings have been unstable, improved asset high quality and decrease funding prices present a basis for gradual restoration.
Analysts anticipate earnings per share to achieve round $2.25 in 2025 and develop modestly—about 2% yearly—via 2030, reflecting disciplined administration and measured, sustainable progress.
Aggressive Benefits & Recession Efficiency
Midland States Bancorp’s aggressive edge comes from its robust Midwest neighborhood presence, diversified companies, and deal with customized banking. Its choices—together with industrial lending, wealth administration, belief, and insurance coverage—create a number of income streams and permit it to compete with bigger banks whereas sustaining flexibility.
The financial institution’s efficiency in the course of the recession has been combined. Whereas robust capital and tightened credit score requirements assist mitigate threat, the 2024 loss highlighted vulnerabilities in mortgage high quality and rate of interest swings. Current measures to cut back higher-risk loans and enhance asset high quality ought to make Midland extra resilient in future downturns.
Dividend Evaluation
The corporate’s annual dividend is $1.28 per share. At its current share value, the inventory has a excessive yield of seven.9%.
Given the corporate’s 2025 earnings outlook, EPS is predicted to be $2.25 per share. Because of this, the corporate is predicted to pay out roughly 57% of its EPS to shareholders in dividends.
Last Ideas
Midland States Bancorp has declined 30% this yr following weaker-than-expected enterprise outcomes. Over the following 5 years, it may ship a median annual return of 15.0%, supported by 2.0% earnings-per-share progress, a 7.9% dividend yield, and a 7.2% potential valuation tailwind.
Nevertheless, issues concerning the high quality of its mortgage portfolio make the inventory dangerous, so we price it a maintain for buyers with a better threat tolerance. The inventory is greatest fitted to affected person buyers who can face up to unstable efficiency and value swings.
Excessive-Yield Particular person Safety Analysis
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