Big banks hike dividends after passing Feds stress test – Fox Business

https://www.foxbusiness.com/markets/big-banks-hike-dividends-after-passing-feds-stress-test


0

Several major American banks announced dividend boosts on Monday, days after the Federal Reserve declared all big lenders passed their stress tests and said the heightened restrictions imposed due to COVID-19 would be lifted.

JPMorgan Chase, Bank of America, Wells Fargo and several other large U.S. lending institutions now plan to return billions to their shareholders over the next year.

Ticker Security Last Change Change %
JPM JPMORGAN CHASE & CO. 154.33 +0.28 +0.18%
WFC WELLS FARGO & CO. 45.79 -0.59 -1.27%
BAC BANK OF AMERICA CORP. 41.56 -0.06 -0.14%

JPMORGAN BUYS STAKE IN ROBERT KRAFT’S SPORTS-DATA COMPANY

Last week, the Fed reported that 27 of the nation’s largest banks passed the stress test with flying colors, noting that the lenders now hold more than twice the average capital cushion requirement that had been imposed by the U.S. Treasury Department last year after the coronavirus hit.

In reaction, JPMorgan Chase announced Monday that they would hike their quarterly common stock dividend by 10 cents to $1.00 per share for third quarter, and Bank of America said they would boost their dividend by 17% to 21 cents per share in Q3 while continuing a $25 billion buyback. Wells Fargo doubled its dividend to 20 cents per share and announced a buyback of roughly $18 billion of its common stock.

CLICK HERE TO READ MORE ON FOX BUSINESS

Morgan Stanley announced they would double their dividend from 35 to 70 cents per share and said they would buy back $12 billion of outstanding shares over the next year. PNC also joined the fray, announcing they would raise their dividend by 9% to $1.25 per share.

The moves by the big banks signal that lenders are ready to put money back in the pockets of their investors following 2020 losses brought on by the coronavirus pandemic.

The Associated Press contributed to this report.


Like it? Share with your friends!

0

0 Comments

Your email address will not be published. Required fields are marked *

Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format