JPMorgan Chase
Yes, JPMorgan Chase (NYSE:JPM) and the rest of the banking industry remain in dire straits after the mortgage meltdown. Yes, new regulations and capital requirements will certainly impact the bottom line. And yes, after the TARP debacle and the Fed-approved dividend increases — and the equally interesting dividend refusal for Bank of America (NYSE:BAC) — investors shouldn’t expect much stability in the balance sheet of financials.
However, JPMorgan CEO Jamie Dimon loves to crow about the stability of his company. It now is the largest bank by assets, thanks to the fire-sale purchase of Washington Mutual and other deals. Revenue is above 2008 levels — and 2012 profits are forecast to be five times the earnings tallied in fiscal 2008. With a projection of $4.46 in earnings per share, the current annual dividend of $1 is a measly 22%. I give Dimon credit for getting regulators to sign off on a 400% dividend hike at the beginning of last year. But that’s still not enough, and I hope JPM has another dividend increase cooking.
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