Jamie Dimon, CEO of JPMorgan Chase & Co., during the America Business Forum in Miami, Florida, United States, Thursday, November 6, 2025.
Eva Marie Uzcategui | Bloomberg | Getty Images
JPMorgan Chase on Wednesday unveiled a new $50 billion stock buyback program and raised its quarterly dividend after the Federal Reserve found the sector remained well capitalized in its annual stress test.
The largest U.S. bank by assets announced it would increase its quarterly dividend by 10% to $1.65 per share, subject to board approval, and authorized the buyback program effective July 1.
“The Board’s planned dividend increase is supported by our continued investment in our business and strong financial performance,” JPMorgan CEO Jamie Dimon said in a statement. “As always, we are prepared for a wide range of scenarios, including the hypothetical extremely adverse prudential scenario of 2026.”
Goldman Sachs also increased its quarterly payouts, saying its dividend would rise 11% to $5 per share, citing the company’s strong earnings and financial condition.
Wells Fargo said it plans to increase its dividend 11% to 50 cents per share, while Morgan Stanley increased its payout 15% to $1.15 per share, while reauthorizing a $20 billion buyback program.
Bank of America CEO Brian Moynihan said in a statement that the bank will make an announcement on the company’s dividend next month.
The announcements follow the release of the Federal Reserve’s annual stress test, which found that the big 32 banks remained above their minimum capital requirements even after a hypothetical recession generating more than $708 billion in projected losses across the industry.
Unlike previous years, however, the results will not affect banks’ capital requirements. The Fed said earlier this year it would keep capital buffers unchanged through 2027 while revising the testing methodology, meaning banks entered Wednesday with a clear understanding of their capital requirements.
While analysts expected this exercise to have little immediate impact, as a sign of confidence, banks chose to make payout increases, despite regulatory vagueness.
In a note ahead of the earnings release, KBW described this year’s stress test as “a set in motion,” arguing that investors are more focused on the Basel III Endgame proposal expected later this year than on the Fed’s annual exercise.
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