Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Dynamic Maximizers®
  • Retirement Compounders®
  • Free Email Signup
  • Dick Young’s Safe America

Bank Dividends Soar

October 26, 2017 By Jeremy Jones, CFA

After U.S. banks passed the Fed’s latest stress tests with flying colors, bank dividends are soaring. Some of our highly favored banks just increased their dividends as much as 35% in addition to announcing increased buybacks. The FT reports on bank dividends.

Now, rather than accumulating capital to build buffers against losses, the likes of Morgan Stanley and Bank of America can start handing it back. Across the 34 banks which took this year’s exam, payouts to shareholders will come close to 100 per cent of projected profits over the next year, according to senior Fed officials, up from about 65 per cent for the class of 2016.

At JPMorgan Chase, for example, where CEO Jamie Dimon has been boasting for years of his “fortress” balance sheet, the payout ratio will be $27bn, or 110 per cent of profits over the next 12 months. That is 24 percentage points higher than the market’s expectations, according to Jefferies.

The splurge marks an inflection point. Over the past seven years the Fed has been urging the banks to build capital and to improve the way they track risks. Even if they passed, banks were often issued with long lists of “matters requiring attention” — or more seriously, “matters requiring immediate attention”.

Now, the Fed is saying that much of that work is over. Some banks like JPMorgan, the biggest in the country by assets, will be returning more capital than they are generating, while many of the rest will be radically lifting payouts from previous levels.

Read more here.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • Dividends are on the Rise
  • The Dividend Plan
  • Dividends Then and Now Are the Answer
  • Author
  • Recent Posts
Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Richard C. Young & Co., Ltd. was ranked #10 in CNBC's 2019 Financial Advisor Top 100. Jeremy is also a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
  • Corporations Rush to Reap Equity Windfall - January 22, 2021
  • Investors Are Being Conditioned Not To Recognise the Danger - January 21, 2021
  • What Is the Stock Market’s Link to the Economy? - January 20, 2021

Search Young Research

Most Popular

  • The Fed is Sacrificing Retirees to Save the Banks
  • Dick Young’s Safe America: Chapter 1, Part I
  • I’ve Been in Richard Young’s Maximizers for Years
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • The Power of a Compound Interest Table
  • Whether Through Audacity or Ignorance, Stock Fundamentals Are Being Ignored
  • The Highest Yielding S&P 500 Stocks
  • Jim Simons's Renaissance Technologies vs. Internet Forum Traders
  • Smith Family Robinson in Live Free or Die, NH
  • February RAGE Gauge: Americans Focusing on What's In Front of Them

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Could this Be the Vanguard GNMA Winning Edge?

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

RSS The Latest at Richardcyoung.com

  • Absentee Ballots Not Verified
  • SARS-CoV-2: Probability of Outdoor Airborne Transmission Very Low
  • Your Personal Safety: Concealed-Carry How to Carry Your Freedom
  • Mostly Peaceful, Ungovernable Protestors
  • Biden’s Inaugural, the Most Confusing, Contradictory, Incoherent Ever?
  • Is the GOP Over? Not Even Close: Here’s Why
  • Impeaching an Ex-President is Unconstitutional
  • Ten Republican Senators to Get Behind
  • Why Do Government Officials Want To Silence Their Opponents?
  • And 2022 Is Right Around the Corner

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Social Media

  • Facebook
  • Twitter
  • Youtube
  • Pinterest

Copyright © 2021 | Terms & Conditions

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.