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JPMorgan stock has gained 4.9% since Wednesday’s close.
Nina Westervelt/Bloomberg
Some of the largest banks in the country have announced plans to increase dividends after passing the Federal Reserve’s annual stress test earlier this week.
The Fed wants banks to wait at least two days after the stress test to release their capital plans. After the market closes on Friday,
JPMorgan Chase
(ticker: JPM) said it would increase its quarterly payout to $1.05 per share, up from $1.05 per share.
Morgan Stanley
(MS) increased its dividend to 85 cents per share from 77.5 cents.
Wells Fargo
(WFC) increased its payout by 5 cents to 35 cents per share.
Goldman book
(GS) increased its quarterly dividend from $2.50 to $2.75 a share. And
Citigroup
(C) increase the payout by 2 cents to 53 cents per share.
Every year, the Fed examines banking companies to see if their balance sheets are solid enough to withstand severe pressures in the economy and financial markets. Results released Wednesday show that all 23 participating banks would have enough capital to absorb losses of up to $541 billion — in an apocalyptic scenario — even if the unemployment rate rises. 10% and the stock market plunged 45%.
Bank stocks have been lagging behind the broader market recently as the collapse of several midsize banks earlier this year sparked widespread concern about the overall health and stability of the industry.
The latest stress test brought new confidence to the market and gave the team a nice boost.
JPMorgan stock is up 4.9% since Wednesday’s close.
Wells Fargo
rose 5.1%, Morgan Stanley stock rose 1.7% and
Goldman book
shares rose 2.8%.
Citigroup
however, shares have fallen 0.4% since Wednesday, an outlier of the bunch.
Write to Evie Liu at [email protected]
