Higher interest rates spur these U.S. banks

Article Excerpt

Higher interest rates have already begun to pay off for the largest banks in the U.S. They’re also poised to boost their dividends. J.P. Morgan has gained 15% since the start of 2017. Wells Fargo, which is down 2%, has already moved past the bad publicity stemming a group of employees who opened fake accounts in order to earn bonuses. We like the long-term prospect for both stocks. J.P. MORGAN CHASE & CO. $99 (New York symbol JPM; Conservative Growth Payer Portfolio, Finance sector; Shares o/s: 3.5 billion; Market cap: $346.5 billion; Dividend yield: 2.3%; Divd. Sustainability Rating: Above Average; www.jpmorganchase.com) is the largest U.S. bank, with $2.6 trillion in assets as of September 30, 2017. Morgan last raised its quarterly dividend in October 2017. Investors now receive $0.56 a share, up from $0.50. The new annual rate of $2.24 yields 2.3%. In the third quarter of 2017, the bank’s earnings improved 7.1%, to $6.7 billion from $6.3 billion a year earlier…