JPMorgan, Citi, BofA, Wells Fargo all boost dividends

Some of the biggest banks in the United States announced plans to increase their dividends after passing the latest Federal Reserve stress test.

JPMorgan Chase (JPM) is raising its dividend to $1.25 per share from $1.15. The bank's board also authorized a $30 billion share repurchase plan.

Bank of America (BAC) is boosting its dividend to $0.26/share from $0.24, Citigroup's (C) dividend is going to $0.56/share from $0.53, and Wells Fargo's (WFC) dividend rises to $0.40 from $0.35.

Yahoo Finance anchor Julie Hyman breaks down the numbers in the video above.

For more expert insight and the latest market action, click here to watch this full episode of Asking for a Trend.

This post was written by Stephanie Mikulich.

Video transcript

America's biggest banks, unveiling capital plans after the results of the stress test earlier this week.

Julie Hyman is back here with us with the very latest details.

Julie.

So what?

Basically what we have now are all of the big banks letting us know what their dividends will be and what their stock buyback plans will be.

So let me give you the headlines first and then explain what's going on here and why we're learning about this right now.

Citigroup.

Let's start.

There is, uh, planning a quarterly dividend of 56 cents a share here.

That is an increase in the company's, uh, dividend here by, uh, a few cents here we've got JP.

Morgan says it's going to boost its quarterly dividend to a buck 25 from a dollar 15 and JP.

Morgan is also planning, um, a new buyback plan of up to $30 billion.

That's its new authorization that replaces its previous authorization.

Wells Fargo said it's going to boost its third quarter stock dividend to 40 cents a share.

It's a gain of about 14% of for that company, and then you also have B of a Bank of America which is also raising its dividend as part of this to 26 cents a share from 24 cents a share.

Why are we getting all of these right now?

Well, as you know, because our Jennifer Schomer covered it every year.

The banks have to go through this stress testing from the Federal Reserve.

This was something enacted during the financial crisis.

As you know, that made sure that the banks had adequate capital in the event of an emergency.

So they sort of model the fed, models it out.

Everything goes to hell like it did, uh, during the financial crisis.

How would these banks look?

Would they have enough capital to cover their losses?

Once they pass those stress tests, then the banks can come up with a capital return plan.

IE buybacks and dividends.

They submit that for approval, they get approved.

Then they all announce it on the same day.

So that is where we're at.

Which is why if you're an investor in a big bank, you were watching those stress tests?

Yeah, you were waiting.

What were you gonna get back in terms of, um, the cash.

So I just mentioned a few of them.

But any bank you can think of today is coming out with this information.

Um, and so if you're an investor in any of these banks, you should check out.

For example, Morgan Stanley, its dividend going to 92.5 cents buy back of up to $20 billion.

5th, 3rd out with its news on this too.

So all all of the banks coming out with their Julie.

Thank you.

Appreciate it.