JPMorgan Chase & Co. Increases Dividend to $1.40 Per Share

JPMorgan Chase & Co. (NYSE:JPM) has made an announcement regarding a dividend increase. On Tuesday, March 18th, the company confirmed that it will pay a quarterly dividend of $1.40 per share. Stockholders listed on record as of Friday, April 4th, will receive this dividend on Wednesday, April 30th. This dividend results in an annualized payout of $5.60, giving a yield of 2.38%. Notably, this marks a 12% increase from the previous quarterly dividend, which was set at $1.25.

Dividend History and Future Expectations

Over the past few years, JPMorgan Chase & Co. has maintained a strong track record of increasing its dividend, averaging an annual growth of 8.1% over the last three years. The company has consistently raised its dividend every year for the past 14 years. Currently, JPMorgan Chase & Co. operates with a payout ratio of 24.9%, indicating that the dividend is well-supported by its earnings. Analysts project that the company will earn $19.42 per share in the coming year, suggesting that it should comfortably cover the $5.00 annual dividend, leading to an expected future payout ratio of 25.7%.

Stock Performance Overview

On Tuesday, during midday trading, shares of JPMorgan Chase & Co. rose by $1.07, reaching a price of $235.00. The company experienced a trading volume of 10,339,680 shares, surpassing its average volume of 8,842,403 shares. Key financial metrics for the company include a debt-to-equity ratio of 1.24, a quick ratio of 0.89, and a current ratio of 0.88. The overall market capitalization stands at $657.08 billion, with a price-to-earnings (P/E) ratio of 11.90 and a P/E/G ratio of 2.83. Furthermore, the stock has fluctuated between a 12-month low of $179.20 and a high of $280.25, with a 50-day moving average price of $258.16 and a 200-day moving average price of $239.04.

Recent Earnings Performance

JPMorgan Chase & Co. released its latest earnings report on Wednesday, January 15th, reporting earnings of $4.81 per share, which exceeded analysts' consensus estimates of $4.03 by $0.78. The company reported revenue of $42.77 billion for the quarter, surpassing expectations of $41.90 billion. With a net margin of 20.96% and a return on equity of 16.99%, the company's quarterly revenue increased by 10.9% year-over-year. In the same period last year, the company achieved earnings of $3.04 per share. Analysts are forecasting an average of $18.1 earnings per share for the current fiscal year.

Recent Insider Transactions

In other developments, on Thursday, January 16th, Stacey Friedman, the General Counsel of JPMorgan Chase & Co., sold 3,303 shares of the company at an average price of $253.94, totaling approximately $838,763.82. Following this transaction, Friedman retains 47,620 shares of the company's stock valued at about $12,092,622.80, reflecting a 6.49% decrease in their position. Another insider, Robin Leopold, sold 1,250 shares on February 20th at an average price of $270.09, totaling $337,612.50. Following this trade, Leopold owns 50,377 shares valued at around $13,606,323.93. In total, insiders have sold 46,326 shares of company stock worth approximately $12,448,445 in the past quarter, and insiders currently hold 0.79% of the company's stock.

Institutional Investment Trends

In recent investment activities, Brighton Jones LLC, a hedge fund, raised its stake in JPMorgan Chase & Co. by 11.0% during the fourth quarter, owning 48,732 shares post-purchase. These holdings were valued at $11,682,000, according to the latest SEC filing. Overall, institutional investors and hedge funds comprise 71.55% of the company’s stock ownership.

Analysts Ratings and Forecasts

Various research analysts have provided their insights regarding JPMorgan Chase & Co. Oppenheimer downgraded the stock from an "outperform" to a "market perform" rating in November. In contrast, Bank of America increased their price target from $260.00 to $280.00 and rated the company as a "buy" in January. Keefe, Bruyette & Woods also adjusted their price target to $264.00 with a “market perform” rating. Wolfe Research upgraded the stock from a “peer perform” rating to an “outperform” rating, setting a price target of $269.00. Overall, there is a consensus that the stock is rated as a “Moderate Buy” with a price target of $252.89.

About JPMorgan Chase & Co.

JPMorgan Chase & Co. is a leading financial holding company that offers a wide range of financial and investment banking services. Its offerings include various investment banking products, corporate strategy advising, capital raising in equity and debt markets, risk management services, market making, and brokerage research.

Dividend, Stock, Earnings