Bank Stocks MS, GS, BAC, WFC Gain on Dividend Hikes


  • Morgan Stanley (MS) is up 3% after the Morgan Stanley raised its dividend 11%.
  • The bank also announced up to $20 billion of new share buybacks.
  • Several other very large U.S. bank stocks also increased their payouts.
bank stocks - Bank Stocks MS, GS, BAC, WFC Gain on Dividend Hikes

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Morgan Stanley (NYSE:MS) stock is high on investors’ radar and rallying 3% after the bank raised its dividend significantly. Among the other large U.S. bank stocks that announced major dividend increases recently are Wells Fargo (NYSE:WFC), Bank of America (NYSE:BAC) and Goldman Sachs (NYSE:GS). In morning trading, GS stock climbed 1.3%, BAC stock added 2% and WFC stock rose 2.2%.

The banks increased their dividends after they were authorized to do so by the Federal Reserve due to the positive results of their stress tests. Those results were unveiled last week.

MS Stock Dividend Hike and Share Repurchases

The bank announced late yesterday that it would increase its dividend by 11%, bringing the payout to 77.5 cents per share. Its dividend was previously 70 cents per share. In 2021, the bank doubled its dividend.

Additionally, Morgan Stanley’s board approved a new, multi-year share repurchase program worth up to $20 billion without a set expiration date. The authorization will take effect starting in the third quarter.

In a statement, the bank’s CEO, James Gorman, said, “Our robust capital return program, which is driven by our business transformation, especially the durable earnings from our Wealth Management and Investment Management businesses.”

Other Bank Stocks on the Rise

Bank of America raised its dividend 5% while Wells Fargo enacted a 20% increase and Goldman ordered a 25% surge. Analysts had been very upbeat about the results of the latter bank’s stress test.

On the other hand, JPMorgan (NYSE:JPM) and Citi (NYSE:C) kept their payouts flat. JPMorgan cited “higher future capital requirements” as a key reason for its decision.

These gains come as recession worries continue to impact the market. Morgan Stanley analyst Mike Wilson is one of the most hardline bears on Wall Street, as he recently predicted the S&P 500 could tumble all the way to 3,000.

In the last month, MS stock has sunk about 7%.

On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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