Summary
JPMorgan Chase & Co. announced on March 11, 2015, a significant development regarding its capital distribution plan. The Federal Reserve Board has indicated it has no objection to the firm's adjusted 2015 capital distribution plan. This positive regulatory feedback paves the way for increased shareholder returns. Specifically, the company's Board of Directors plans to raise the quarterly common stock dividend to $0.44 per share, an increase from the previous $0.40 per share, effective in the second quarter of 2015. Furthermore, a substantial share repurchase program has been authorized, allowing for the buyback of up to $6.4 billion of common equity between April 1, 2015, and June 30, 2016. This includes shares repurchased to offset those issued under employee compensation plans.
Key Highlights
- 1Federal Reserve Board does not object to JPM's adjusted 2015 capital distribution plan.
- 2Quarterly common stock dividend to increase to $0.44 per share from $0.40 per share.
- 3Dividend increase is effective starting the second quarter of 2015.
- 4Authorization for a share repurchase program of up to $6.4 billion.
- 5Share repurchase period is from April 1, 2015, to June 30, 2016.
- 6Share repurchase includes shares bought back to offset equity-based compensation plan issuances.
- 7Press release dated March 11, 2015, detailing these capital actions is attached as an exhibit.