Wells Fargo to lift its quarterly dividend to 35 cents a share after Fed stress test
JPMorgan plans to boost its payout to $1.05 a share from $1 a share starting in the third quarter, the New York-based bank said in a statement.
"The Federal Reserve's 2023 stress test results show that banks are resilient – even while withstanding severe shocks – and continue to serve as a pillar of strength to the financial system and broader economy," JPMorgan CEO Jamie Dimon said in the release. "The Board's intended dividend increase represents a sustainable and modestly higher level of capital distribution to our shareholders.
Wells Fargo said it will increase its dividend to 35 cents a share from 30 cents a share, and Morgan Stanley said it would boost its payout to 85 cents a share from 77.5 cents a share. On Wednesday, the Fed released results from its annual exercise, saying that all 23 of the banks that participated had cleared the regulatory hurdle. The test dictates how much capital banks can return to shareholders via buybacks and dividends. In this year's exam, the banks underwent a "severe global recession" with unemployment surging to 10%, a 40% decline in commercial real estate values and a 38% drop in housing prices.
While higher dividends are welcomed by investors, the banks held back on announcing specific plans to boost share repurchases.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Wells Fargo: Prepare for recession by investing in high-quality stocksPlay defense and load up on quality stocks because a recession is coming, Wells Fargo strategist says
Read more »
Wells Fargo is leaving nine floors on Independence Mall to consolidate offices on West Market StreetDaily News | Wells Fargo is leaving nine floors on Independence Mall to consolidate offices on West Market Street
Read more »
Wall St edges higher, rally in banks offsets jitters about hawkish Fed By Reuters*U.S. STOCKS RISE AFTER UPBEAT ECONOMIC DATA, BANKS RALLY AFTER FED STRESS TEST RESULTS $DIA $SPY $QQQ $IWM $VIX 🇺🇸🇺🇸
Read more »
Fed's Powell does not rule out rate rise at coming meetingsFederal Reserve Chairman Jerome Powell reiterated Wednesday that more rate rises likely lie ahead for the central bank, and did not rule out a boost in the cost of borrowing at a policy meeting scheduled for the end of July.
Read more »