After passing the Fed’s stress tests, banks are boosting quarterly dividends and announcing stock buybacks— US banks will pay $2B more per quarter in dividends. ?
Morgan Stanley led the way, doubling its dividends (to $0.70). The bank also announced an ambitious $12B buyback program.
Goldman Sachs boosted dividends by 60% (to $2). Wells Fargo doubled dividends (to $0.20), halfway back to its pre-pandemic dividend of $0.51. The bank will prioritize its $18B buyback.
Bank of America will lift dividends by 17% (to $0.21). JPMorgan Chase increased dividends 11.1% (to $1). Citigroup said its dividends would be “at least 51 cents a share” (spoiler alert: Citi’s are at $0.51 right now).
What do big banks have in common? ? Sticking to their pre-pandemic playbook of resuming stock buybacks and delivering strong dividends.
The Financial Select Sector SPDR Fund ($XLF) rose 1.35% this week.