Big Bank Dividend Increases Follow Stress Test Results

After markets closed last Wednesday, the Federal Reserve reported that all 23 banks required to prove their ability to withstand a major market and financial collapse could, in fact, pass the test. The Fed ordered the banks to wait until U.S. equity markets closed on Friday before reporting any planned capital actions or stress capital buffer requirements. (These banks are still pouring billions into the fossil fuel industry.)

As of Monday morning, seven of the eight global systemically important U.S. banks have announced dividend increases. Here is what the nation’s biggest banks have said so far.

JPMorgan Chase & Co. (NYSE: JPM | JPM Price Prediction) raised its quarterly dividend from $1.00 per share to $1.05, beginning with the third quarter of this year.

Wells Fargo & Co. (NYSE: WFC) will raise its dividend from $0.30 to $0.35 per share beginning in the third quarter. This is the largest percentage increase (16.7%) of any of the banks that have reported dividend hikes.

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Citigroup Inc. (NYSE: C) raised its dividend from $0.51 to $0.53 per share, the smallest increase among the large banks. The increase is effective for the third quarter.

Morgan Stanley (NYSE: MS) lifted its dividend from $0.775 to $0.85 per share beginning in the third quarter.

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Goldman Sachs Group Inc. (NYSE: GS) increased its quarterly dividend from $2.50 to $2.75 per share, the largest nominal increase among the banks that have announced increases.

State Street Corp. (NYSE: STT) said it would raise its dividend from $0.63 to $0.69, effective October 1, and continue its share buybacks under an existing $4.5 billion program.

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Bank of New York Mellon Corp. (NYSE: BK) will raise its dividend payment from $0.37 to $0.42 per share beginning in the third quarter. BNY Mellon also said it intends to continue repurchasing shares under a $5 billion buyback program announced in January.

Bank of America Corp. (NYSE: BAC) has not announced a change to its dividend. Monday morning, the bank said it had “initiated a dialogue” with the Fed to clarify the differences between the stress test results and the Fed’s Comprehensive Capital Analysis and Review (CCAR) results over the nine-quarter stress period.