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Morgan Stanley, Goldman Sachs, Wells Fargo, and Bank of America to Raise Their Dividends After the Federal Reserve’s Annual Stress Test.

By: Best Stocks
June 28, 2022 at 11:33 AM EDT

The dividend of Goldman Sachs (NYSE: GS) will be increased from $2 to $2.50 per share. We will continue to dynamically manage capital and remain well-positioned to service customers,” CEO David Solomon said in a regulatory filing on Monday.

According to a press release, Morgan Stanley (MS) has authorized a $20 billion share repurchase program and aims to enhance shareholder payouts by 11% to 77.5 cents per share.

BAC and WFC have both increased their quarterly dividends to 22 cents and 30 cents, respectively, from the previous 22 cents and 30 cents.

In Tuesday’s premarket trade, Goldman Sachs shares gained 1.4%. Shares of Morgan Stanley, Bank of America, and Wells Fargo were all up more than one percent.

In view of “greater future capital needs,” JPMorgan & Chase (JPM) plans to keep its quarterly dividend at $1 per share. “In a variety of stressful situations,” Citigroup (C) says it can retain its 51-cent dividend.

For the first time since 2007, this year’s Fed’s annual bank stress test featured a worldwide recession scenario that includes growing unemployment, falling commercial real estate values, and a dramatic slide in stock prices. The findings of this year’s test were announced on Thursday.

Despite an estimated $612 billion in losses, “all banks tested were over their minimum capital requirements,” the Federal Reserve stated in a statement. By the Fed’s estimations, the banks’ capital ratios would fall to 9.7 percent, which is more than twice the minimal requirements.

The post Morgan Stanley, Goldman Sachs, Wells Fargo, and Bank of America to Raise Their Dividends After the Federal Reserve’s Annual Stress Test. appeared first on Best Stocks.

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