Following the Federal Reserve Board’s release of the 2014 Comprehensive Capital Analysis and Review (CCAR) results, both JP Morgan Chase (JPM
JP Morgan Plans Sizable Dividend Boost and $6.5 Billion Buyback
JP Morgan plans to raise its quarterly dividend from 38 cents to 40 cents, making for an annualized payout of $1.60. The intended 40 cent dividend will be paid on July 31 to all shareholders on record as of July 3.
The company will also be repurchasing $6.5 billion of equity from April 1, 2014 to March 31, 2015. JPM’s CEO, Jamie Dimon, had the following comments about the intended financial plans: “We are pleased that our Board intends to raise the dividend and has authorized us to continue our equity buyback program. We anticipate reaching a Basel III Tier I common ratio of 10% by the end of this year, taking into account these capital actions and our ongoing investments in our growing businesses."
Bank of America Raises Dividend 4 Cents, Announced $4 Billion Buyback
Bank of America plans to increase its quarterly payout from 4 cents to 5 cents, making for an annualized payout of 20 cents. The higher payout will be for the company’s second quarter dividend. In addition to the dividend raise, BAC announced a $4 billion share repurchase plan, which will be replacing the company’s current buyback plan that expires on March 31, and will include warrants and common stock.
BAC’s CEO, Brian Moynihan, had the following comments: ”Over the last few years we have focused on positioning the company to return capital to our shareholders. We know that increasing the common dividend is important to our shareholders and we are pleased that we can continue to return excess capital through both repurchases and dividends."
JP Morgan stock was up 47 cents, or 0.78%, in after hours trading. YTD, the stock is up 36.43%.
Bank of America stock was up 15 cents, or 0.87%, in after hours trading. YTD, the stock is up 6.89%.
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