Summary
Morgan Stanley announced its 2017 capital plan, which received no objection from the Federal Reserve. This plan signals a commitment to returning capital to shareholders through increased dividends and a significant share repurchase program. The company intends to increase its quarterly common stock dividend to $0.25 per share, a 25% increase from the previous $0.20 per share, starting in the third quarter of 2017. Furthermore, Morgan Stanley plans to repurchase up to $5 billion of its outstanding common stock over the four quarters beginning in Q3 2017 through Q2 2018. This represents a substantial increase from the $3.5 billion authorized in the 2016 capital plan, indicating strong confidence in the company's financial position and future prospects. These actions are generally viewed positively by investors as they enhance shareholder value.
Key Highlights
- 1Federal Reserve did not object to Morgan Stanley's 2017 capital plan.
- 2Company plans to increase quarterly common stock dividend to $0.25 per share (from $0.20).
- 3Dividend increase is expected to commence with the Q3 2017 dividend.
- 4Authorized share repurchase program of up to $5 billion of common stock.
- 5Share repurchases are planned for the four quarters starting Q3 2017 through Q2 2018.
- 6The $5 billion repurchase authorization is an increase from $3.5 billion in the 2016 capital plan.
- 7Share repurchases will be executed based on capital position and market conditions.