Summary: After the Fed's annual stress tests showed large banks remained well capitalized, JPMorgan announced a $50B buyback and raised its quarterly dividend. Goldman Sachs, Wells Fargo, Morgan Stanley, and Bank of America also made similar moves.
Jamie Dimon, chief executive officer of JPMorgan Chase & Co., speaks during the America Business Forum in Miami, Florida, US, on Thursday, Nov. 6, 2025. The forum brings together leaders in business, sports, culture, and technology. Photographer: Eva Marie Uzcategui/Bloomberg via Getty Images
Jamie Dimon, CEO of JPMorgan Chase & Co., during the America Business Forum in Miami, Florida, on Thursday, Nov. 6, 2025.

JPMorgan $50 Billion Buyback and Dividend Increase After Fed Stress Test

JPMorgan Chase on Wednesday announced a new $50 billion share buyback program and raised its quarterly dividend after the U.S. Federal Reserve's annual stress tests for banks. The results showed the industry remained well capitalized under the test scenario.

The largest U.S. bank by assets said it will raise its quarterly dividend 10% to $1.65 per share, subject to board approval, and authorized the buyback program effective July 1.

JPMorgan CEO Jamie Dimon said in a statement: “The dividend increase proposed by the board is supported by our continued investment in the business and our strong financial performance. As always, we are prepared for a range of scenarios, including the hypothetical 2026 regulatory ‘severely adverse’ scenario.”

Several Banks and Brokers Follow With Dividend Hikes

Goldman Sachs also raised its payout, saying its quarterly dividend would increase 11% to $5 per share, citing strong earnings and capital strength.

Wells Fargo said it expects to raise its dividend 11% to $0.50 per share; Morgan Stanley will increase its payout 15% to $1.15 per share and also reauthorize a $20 billion multi-year common stock buyback program.

Bank of America CEO Brian Moynihan said the company will announce dividend plans next month.

Stress-Test Results: Banks Still Above Minimum Capital Requirements

The announcements came after the Fed released its annual stress-test results. They showed that 32 large banks remained above minimum capital requirements even under the hypothetical recession scenario, which is expected to produce more than $708 billion in losses for the industry.

Unlike in previous years, these results will not affect banks’ capital requirements. The Fed had previously said it would keep the stress capital buffer unchanged through 2027 while overhauling the test methodology. As a result, banks already knew their capital requirements when they entered Wednesday’s test.

Although analysts had previously believed the stress test would have limited short-term impact, the moves at the decision-making level show that banks still chose to keep pushing ahead with dividend increases during the regulatory transition, signaling some confidence.

In a note before the results were released, KBW said this year’s stress test was “just a formality,” arguing that investors were more focused on the Basel III Endgame proposal expected later this year than on the Fed’s annual routine test.