JPMorgan Chase & Co. (NYSE: JPM – $60.14) announced that the Board of Directors has authorized the repurchase of up to an additional $1.88 billion of common equity through the end of the second quarter of 2016 as part of the company’s current equity repurchase program. This amount is in addition to the $6.4 billion of common equity authorized for repurchase by the board last year. JPM has received a “non-objection” from the Board of Governors of the Federal Reserve System to this increase in the amount of common equity that may be repurchased under the firm’s 2015 capital plan.
Earnings this year may continue to stay under pressure with possible increases in loan loss reserves for energy debt held. However, the expectation of higher interest rates, the company’s business simplification efforts, reduced share count and Chase’s strong positions in consumer and investment banking support much stronger earnings by late decade. The shares can be held in aggressive accounts for decent total returns with a growing dividend currently yielding 2.9%.