Morgan Stanley, Bank of America raise dividends; JPMorgan dividend unchanged - 28 iunie 2022
The U.S.'s largest banks announced their capital return plans after Monday's close, after passing the Federal Reserve's stress tests last week. Among the universal banks, Morgan Stanley (US.MS) will boost its dividend by 11%, Bank of America (US.BAC) will raise its Q3 dividend by 5%, and JPMorgan Chase keeps its dividend unchanged. MS stock rises 1.5% in after-hours trading, JPM +0.1%, and BAC +0.1%. JPMorgan Chase (US.JPM) is keeping its quarterly dividend at $1.00 per share for Q3 2022 due to higher future capital requirements resulting from the 2022 Comprehensive Capital Analysis and Review part of the stress tests. Its indicative stress capital buffer increased to 4.0% from its current 3.2%.
Morgan Stanley (MS) will increase its quarterly dividend by 11% to $0.775 per share from the current $0.70 starting in Q3 2022 and is authorizing a new $20B share repurchase program. As a result of the Federal Reserve's CCAR 2022 stress test results, Morgan Stanley is subject to a stress capital buffer of 5.8%, up from 5.7% in its 2021 CCAR results.
Bank of America will increase its quarterly common stock dividend by $0.01 to $0.22 per share from its current dividend. The bank's SCB will be increased by ~100 basis points above its current 2.5% level. That means the company will have to set aside more of its assets as a buffer to ensure it could handle a severe economic downturn.
https://finance.yahoo.com/news/morgan-stanley-bank-america-raise-213350637.html