JPMorgan to boost quarterly dividend to $1.50 per share, approves $50B buyback

JPMorgan (JPM) Chase announced that its board of directors intends to increase the quarterly common stock dividend to $1.50 per share, up from the current $1.40 per share, for the third quarter of 2025. The firm’s quarterly common stock dividends are subject to approval by the board at the customary times that those dividends are declared. In addition, the firm’s board of directors has authorized a new common share repurchase program of $50B, effective July 1. The authorization to repurchase common shares will be used at management’s discretion, and the amount and timing of common share repurchases under the new authorization will be subject to various factors. Under the current Stress Capital Buffer framework, the firm’s preliminary SCB requirement provided by the Federal Reserve is 2.5%, down from the current 3.3%, and the firm’s Standardized Common Equity Tier 1 capital ratio requirement including regulatory buffers is 11.5%, down from the current 12.3%. The Federal Reserve will provide the Firm with its final SCB requirement by August 31, and that requirement will become effective on October 1 and will remain in effect until September 30, 2026. The firm awaits the finalization of the Federal Reserve’s proposed rulemaking to reduce volatility in capital requirements, which would include averaging stress test results from the previous two consecutive years and modifying the annual effective date from October 1 to January 1. Jamie Dimon, Chairman and CEO of JPMorganChase said: “We are steadfast in our commitment to serving our clients and communities, which include consumers, businesses of all sizes, schools, hospitals, cities, states, and countries, across all environments. We continue to make significant investments in products, people, and technology to grow our businesses and position the company for future success. The Board’s intended dividend increase, our second this year, represents a sustainable level of capital distribution to our shareholders and is supported by our strong financial performance. The new share repurchase program provides the ability to distribute capital to our shareholders over time, as we see fit. The Federal Reserve’s 2025 stress test results continue to demonstrate that banks are resilient, withstanding extreme hypothetical shocks while supporting the broader economy and financial markets. In addition to the Federal Reserve’s point-in-time stress test, we conduct hundreds of stress tests each week to protect our company from a wide range of possible outcomes. Our fortress balance sheet, with significant excess capital and robust liquidity, enables us to be a pillar of strength – in both good times and bad times – allowing us to consistently serve our clients, communities, and countries throughout the world. We look forward to future proposals from the Federal Reserve on stress test models and scenarios that will increase transparency and address longstanding issues with the current SCB framework.”