WASHINGTON–The nation’s largest banks have passed their latest stress tests, the first time since the Federal Reserve began conducting the tests seven years ago, and the results should mean big payouts for shareholders.
Analysts expect the big banks to begin paying their largest dividends in 10 years, as the banks can now return up to 100% of their profits to shareholders.
Among the payouts expected:
- Bank of America said it will buy back up to $12 billion of its stock and raise its quarterly dividend by 60%, to 12 cents a share
- JPMorgan Chase plans to buy back as much as $19.4 billion of its stock and raise its dividend by 12%, to 56 cents a share
- Citigroup said it will double its dividend, to 32 cents a share, and will buy back as much as $15.6 billion in shares
- Morgan Stanley is buying back up to $5 billion in shares and raising its dividend by 25% to 25 cents per share