It has just been reported that larger US banks such as JPMorgan Chase & Co. (NYSE:JPM) will not raise their dividends until the second quarter of next year.
This should not surprise anyone as earlier this year the Federal Reserve released new guidelines for all of the major banks to follow. JPMorgan is well ahead of the game and will continue to follow the guidelines for a better tomorrow. The Fed’s newly released guide outlines how these large banks will be able to increase their dividends and at the same time by back their shares. There will be several tests and analysis performed to see if the banks comply before any decision is made.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.