JP Morgan Dividend

JP-Morgan-Chase-LogoJP 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. jpm history

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.

jpm payout ratio

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.

Thank you for reading and feel free to comment!


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