01—Abstract
Summary
Summary of the 8-K filed June 24, 2026. Cited figures are marked; the original filing is the authoritative source.
Morgan Stanley (NYSE: MS) announced on June 24, 2026 that it will raise its quarterly common stock dividend by $0.15a, from $1.00 to $1.15 per share, beginning with the dividend expected to be declared in the quarter ending September 30, 2026.
The Board also reauthorized a multi-year common equity share repurchase program of up to $20 billionb with no set expiration date, starting in the third quarter. Repurchases will be executed from time to time at management's discretion, subject to market conditions, capital position, and economic and earnings outlook. On the regulatory side, the Federal Reserve's 2026 supervisory stress test results do not change Morgan Stanley's Stress Capital Buffer (SCB).
The firm remains subject to its current 4.3% SCB requirement until October 1, 2027, when a new SCB may apply based on the 2027 stress test. Together with other elements of the capital framework, this SCB yields an aggregate U.S. Basel III Standardized CET1 ratio of 11.8%, compared with the firm's actual 15.1% CET1 ratio as of March 31, 2026, indicating a substantial capital cushion above requirements. For investors, the announcement signals management confidence in the firm's capital generation and provides a clear, sizable increase in shareholder returns through both a 15% dividend hike and a $20 billionc buyback authorization.
The CEO framed the move as balancing ongoing investment in growth across the Integrated Firm with greater capital return. Investors should note that the timing and size of buybacks are discretionary and contingent on market and earnings conditions.
02—Key points
Key Highlights
- Quarterly dividend increased 15% to $1.15 per share from $1.00, starting with the dividend expected to be declared in Q3 2026.
- Board reauthorized a multi-year common equity share repurchase program of up to $20 billion with no set expiration date, beginning Q3 2026.
- Federal Reserve 2026 stress test results do not affect the current 4.3% Stress Capital Buffer, which remains in place until October 1, 2027.
- Aggregate U.S. Basel III Standardized CET1 requirement implied at 11.8%, versus an actual CET1 ratio of 15.1% as of March 31, 2026.
- Buybacks are discretionary and will depend on market conditions, capital position, and the economic and earnings outlook.
- CEO Ted Pick emphasized durable returns, a globally scaled business, and capital strength supporting both growth investment and shareholder returns.
03—Questions
Frequently Asked Questions
How much will the Morgan Stanley dividend increase and when does it take effect?
The quarterly common dividend rises by $0.15, from $1.00 to $1.15 per share. The higher amount applies beginning with the dividend expected to be declared by the Board in the quarter ending September 30, 2026.
How large is the new share repurchase program?
The Board reauthorized a multi-year common equity repurchase program of up to $20 billion. It has no set expiration date and begins in the third quarter of 2026. Execution timing and amounts are at management's discretion.
Did the Fed's 2026 stress test change Morgan Stanley's capital requirements?
No. The Federal Reserve's 2026 results do not affect the Stress Capital Buffer. The firm stays at its current 4.3% SCB until October 1, 2027, when a new requirement may apply based on the 2027 stress test.
How strong is Morgan Stanley's capital position?
The firm reported a U.S. Basel III Standardized CET1 ratio of 15.1% as of March 31, 2026. Together with the SCB and other framework elements, the aggregate requirement is 11.8%, leaving a meaningful buffer above the minimum.
Are the buybacks guaranteed to occur at a fixed pace?
No. Repurchases will be made from time to time at prices management considers appropriate, depending on market conditions, capital position, and the future economic and earnings outlook. The filing gives no fixed schedule or quantity per period.
04—Continue