Topic: How To Invest

Dividend Advisor Hotline – Friday, June 30, 2017

Article Excerpt

J.P. MORGAN CHASE & CO., $91.40, New York symbol JPM, is the largest banking firm in the U.S., with total assets of $2.5 trillion as of March 31, 2017. Morgan has passed the U.S. Federal Reserve’s annual “stress test.” It measures how financial firms would cope with a jump in unemployment, falling stock prices and other unfavourable developments. That approval gives them more room to raise their dividends and buy back shares. As a result, Morgan is increasing its quarterly dividend by 12.0%. Starting with the October 2017 payment, investors will receive $0.56 a share, up from $0.50. The new annual rate of $2.24 yields 2.5%. In addition, Morgan plans to buy back up to $19.4 billion of its common shares by June 30, 2018. That’s equal to 6% of its $329.5 billion market cap (the total value of all outstanding shares). Including this latest increase, Morgan’s dividend has grown an average of 13.3% annually over the last 5 years. Its TSI Dividend Sustainability…