The Board of Directors of JPMorgan Chase & Co. (NYSE: JPM – $91.73) said they intend to increase the quarterly common stock dividend 12 % to $0.56 per share (up from the current $0.50 per share), effective the third quarter of 2017. The new annualized rate of $2.24 will yield investors 2.4% at current quotations. The 2017 third quarter dividend would be payable on October 31, 2017, to shareholders of record at the close of business on October 6, 2017. Additionally, the Board has authorized share repurchases of up to $19.4 billion between July 1, 2017 and June 30, 2018 under a new common equity repurchase program. The announcement followed the news that the Federal Reserve Board does not object to the firm’s capital plan under the recently concluded 2017 Comprehensive Capital Analysis and Review.
Shares of JPM are trading at the high-end of their 52-week range, and upside from this point in the short run may be minimal. However, for those investors wishing to participate in the banking sector, shares of good quality JPMorgan Chase can continue to be held for income and potential long-term gains.