JPMorgan said Tuesday it will raise its quarterly dividend by 5 cents to 30 cents per share and buy back up to $15 billion in stock.
Shares of JPMorgan Chase (JPM)Â spiked higher on the news, up 5%, or $1.90, to $42.46.
Analysts at Keefe, Bruyette & Woods listed JPMorgan among the financial institutions likely to raise the payout ratio and buy back shares following results of the Federal Reserve’s latest stress tests on big banks. KBW sees JPMorgan capable of a nearly 70% payout ratio, implying a dividend of 32 cents, and an implied yield of 3.12%.
Citigroup (C) could provide some surprises depending on the results of the stress tests, to be revealed after the close Thursday. We noted yesterday that Fifth Third (FITB), Huntington Bancshares (HBAN) and M&T Bank (MTB) also could boost yields above 3% and many other banks could raise payouts and announce buybacks.