These four passed the Fed’s “stress test”

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The four lenders below (including American Express— see box) have passed the Federal Reserve’s latest “stress test,”which measures how financial firms would cope with a jump in unemployment, falling stock prices and other unfavourable conditions. As a result, they have all raised their dividends and announced new share buyback plans. WELLS FARGO & CO. $55 (New York symbol WFC; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 5.2 billion; Market cap: $286.0 billion; Price-to-sales ratio: 3.4; Dividend yield: 2.7%; TSINetwork Rating: Average; www.wellsfargo.com) will raise its quarterly dividend by 7.1%, to $0.375 a share from $0.35. The new annual rate of $1.50 yields 2.7%. As well, the bank will likely earmark more funds for share buybacks in 2015 than the $9.4 billion it spent last year. That will help push up this year’s projected earnings to $4.16 a share from $4.10 in 2014. The stock trades at 13.2 times that forecast. Wells Fargo is a buy. J.P. MORGAN CHASE…