Two of the largest American financial companies raised shareholder rewards in two weeks. The more moderate raiser raised its dividend by almost 10%. Nothing beats passively investing and growing rich. JPMorgan Chase (NYSE: JPM) and American Express (NYSE: AXP) recently raised their dividends.
1. JPMorgan Chase JPMorgan Chase, one of the top four U.S. banks, underpins the economy. Some income investors rely on it due to its 15-year dividend raise streak and above-average yield. The bank announced a $1.15 quarterly dividend before its first-quarter results, continuing its near-10% dividend rise run.
JPMorgan Chase executives are right in feeling confident in its current and future fundamentals after that big rise. Net revenue jumped 9% and net profits 6% in the first quarter. A 16% increase in average loans drove these increases, while savings rose only 2%.
The bank's star CEO, Jamie Dimon, said in the earnings release that its strong capital base and "peer-leading returns provide us with the capacity and flexibility to both reinvest for growth and maintain an attractive capital-return profile, without compromising our fortress balance sheet."
He mentioned the "attractive capital-return profile." So, "We'll keep raising our payout as long as we keep posting these kinds of results." The company's strong management and good economy should help. The bank's higher distribution will be distributed on April 30 to shareholders of record on April 5. The new amount yields 2.5% at the latest stock closing price.
2. Amex Payment card giant American Express beat JPMorgan Chase in dividend-raising. The board approved a 17% increase in quarterly dividends from $0.60 to $0.70 in early March. AmEx is like a bank because it issues credit cards, offers credit to cardholders, and holds loans. Thus, it is a busy lender that can learn a lot about its borrowers by examining their expenditure data.
As 2024 began, AmEx released its fourth-quarter and full-year 2023 results. Over 2022, net revenue gained 14% and net income 11%, which is impressive given the company's age and size. A loan business has high net margins: 14% last year and 2022.
Analysts expect strong first-quarter results from the corporation. According to experts, they expect a 35% increase in per-share net income and a 21% top line increase. Investors of record as of April 5 will receive AmEx's higher quarterly distribution on May 10. The dividend hike was bigger than JPMorgan's in percentage, but it yielded 1.3% at the current stock price.
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