Big Banks Are About to Hand $130Bn to Investors

Dividend lovers take note.

The big banks are getting a big boost going into Thursday trading.

The Federal Reserved gave across the board approvals for the financial companies' capital plans, most of which included share buybacks and dividend increases.

The approvals are a signal of strength for the banks, as the Fed no longer thinks holding more capital in reserve to help survive a potential crisis is necessary. Instead of reserving their money, the banks are able to share it with their shareholders.

Barclays analysts said that the bank it covers are set to “return over $130bn of capital back to shareholders over the next 4 quarters in the form of dividends and share repurchases up 38% from the prior 4 quarters.”

Goldman Sachs, which passed the stress test itself, released a note tallying up all the buybacks and dividend increases in the sector. Those shareholder wealth moves, along with the share price increases, are listed below for some of the biggest names in the sector.

  • Bank of America (BAC) Stock move: +3.0% Dividend: 24% Buybacks: 55% Total year/year increase: 30%
  • JPMorgan (JPM) Stock move: +2.75% Dividend: 31% Buybacks: 70% Total year/year increase: 27%
  • Citigroup (C) Stock move: +3.28% Dividend: 23% Buybacks: 102% Total year/year increase: 56%
  • Key Corp (KEY) Stock move: +3.84% Dividend: 29% Buybacks: 50% Total year/year increase: 16%
  • Wells Fargo (WFC) Stock move: +4.12% Dividend: 37% Buybacks: 53% Total year/year increase: 13%
  • Capital One (COF) Stock move: -1.02% Dividend: 19% Buybacks: 45% Total year/year increase: -19%
  • BB&T (BBT) Stock move: +2.68% Dividend: 41% Buybacks: 71% Total year/year increase: 45%

Above data collected by Goldman Sachs

Full story at Business Insider

1 Comment

#1 Stock of This Generation

Set to disrupt global industries, this tiny $2 stock could very soon shoot up 150%, 400% … even 900% or more!-
Enter your email address to receive this company’s name and ticker symbol for free.

By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)