Major U.S. banks announced plans to increase capital returns on June 26. These moves follow successful results from the Federal Reserve's 2026 stress tests. All 32 tested institutions remained above minimum capital requirements. The tests modeled a hypothetical severe recession with $708 billion in losses.
JPMorgan Chase plans to raise its dividend to $1.65 per share. The bank also launched a new $50 billion share buyback program. Morgan Stanley boosted its dividend by 15%. The new payout reaches $1.15 per share. Morgan Stanley also authorized a $20 billion share repurchase plan.
Citigroup announced a 12% dividend increase. The Citigroup payout will rise to 67 cents per share. Goldman Sachs will raise its dividend by 11%. The new dividend reaches $5 per share. Wells Fargo expects an 11% dividend hike. Its payout will increase to $0.50 per share.
These actions signal strong capital positions and a positive earnings outlook. The payouts provided a significant boost to investor sentiment for the financials sector.