Summary
Morgan Stanley announced significant capital return initiatives, including an increase in its quarterly common stock dividend to $1.15 per share, up from $1.00 per share. This increase is set to take effect beginning with the dividend expected to be declared in the third quarter of 2026. Additionally, the Board of Directors has reauthorized a substantial multi-year common equity share repurchase program totaling up to $20 billion, commencing in the third quarter with no set expiration date. These actions underscore the company's confidence in its financial position and future outlook. The company also provided an update on its regulatory capital position following the Federal Reserve's 2026 supervisory stress tests. Notably, these stress test results do not impact Morgan Stanley's current Stress Capital Buffer (SCB) requirement of 4.3%. The company expects this SCB requirement to remain in place until October 1, 2027, at which point a new requirement may be determined based on the 2027 stress tests.
Key Highlights
- 1Quarterly common stock dividend increased to $1.15 per share from $1.00 per share, effective for the third quarter 2026 dividend declaration.
- 2Multi-year common equity share repurchase program reauthorized for up to $20 billion, beginning in Q3 2026, with no set expiration date.
- 3Share repurchases will be executed based on market conditions, capital position, and future economic/earnings outlook.
- 42026 Federal Reserve supervisory stress tests results do not affect the current 4.3% Stress Capital Buffer (SCB) requirement.
- 5Current SCB requirement of 4.3% is expected to remain in place until October 1, 2027.
- 6A new SCB requirement may be implemented after October 1, 2027, based on the 2027 supervisory stress test results.
- 7The company is reaffirming its commitment to returning capital to shareholders through both dividends and buybacks.