JP Morgan’s dividend history since the turn of the century is the topic of Friday’s snapshot. The purpose of the post is not to provide a full analysis of a company, but rather a quick look at a 20-year dividend trend.
JP Morgan’s dividend is currently $3.60 and yielding 3.38% with an ex-dividend date of July 2, 2020. The ex-dividend date signifies two important aspects of dividend investing: to benefit from the dividend payout you must own the stock the day prior and the ex-dividend date is the date the stock starts trading without the value of the next dividend payout.
JP Morgan is not considered a dividend king or dividend aristocrat. The early part of the 2000’s illustrates JP Morgan stuck on a dividend payout of $1.36 per share dropping to $0.53 at the height of the financial crisis a decade ago. JP Morgan CEO, Jamie Dimon, explained the dividend cut rational in his 2008 letter to shareholders as a desire to maintain the balance sheet in an uncertain environment. Mr. Dimon wrote “a 30%-40% payout of normalized earnings is ultimately reasonable.”
The nadir of the JP Morgan dividend was 2010 and the company has grown its payout at a rapid rate since. The estimated payout in 2021 rises to $3.72 and in 2022 to $3.92. JP Morgan is proving a commitment to its shareholders with the continued rise in dividend. The company is an elite investment bank and Jamie Dimon is a tremendous CEO.
Dividends are only a portion of the research needed to determine whether a particular company is a good investment. To find out how I determine a pool of stock for further research, read about my stock screening process.
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