JPMorgan Chase (NYSE:JPM) plans to increase its quarterly common stock dividend to $1.25 per share for Q3 2024, up 8.7% from its current $1.15 per share dividend. JPM has authorized a new common share repurchase program of $30 billion, effective July 1, 2024. Benzinga's Premarket Prep team discuss.
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00:00we anticipated, and I told you there's money to be made in news anticipation here, about the banks
00:06doing some buybacks Friday night. We actually mentioned J.P. Morgan specifically on this show.
00:12I took a long position in J.P. Morgan into the close, as I said I would likely do, and was
00:17rewarded when they came out at 4.30 and AB might as well give us headlines because multiple banks
00:23come out with dividends, but the buyback J.P. Morgan, pretty massive. Yeah, let me go ahead and
00:27pull that headline up real quick. They increased dividend from $1.15 to $1.25 a share, so a $0.10
00:34increase there. Authorized a $30 billion buyback program. Again, after the stress test results
00:42came last week, you had some of these banks come in and announce increased dividends. Then J.P.
00:48Morgan, $30 billion buyback program. We just talked about Boeing's market cap is $100 billion.
00:53It's about a third of the market cap of Boeing that J.P. Morgan is doing just in buybacks.
00:58Yeah, I'm actually, I've sold it now. I've sold it into the pop because I was in it just for a
01:05trade. I actually was disappointed that it didn't pop more. I got a buck off of it. I thought it
01:10would have got more. It's still only up a dollar here this morning, but maybe this was kind of like
01:16obvious guy says. Basically, we knew Friday night they could start coming out with their
01:22capital return allocations here. We knew that there would probably be some announcements Friday
01:28night. We knew J.P. Morgan did really well on the stress test, so they were probably going to be one
01:32of the ones that did the biggest buybacks. Absolutely, that is exactly what happened.
01:36It was kind of like an obvious trade. It's why the stock was up into it as well. It was up Friday
01:42into it. It was pretty obvious that this was going to get announced. That's why the stock's
01:47probably not popping as much as I thought it would. It had a nice run. If you look just a
01:53couple of weeks ago, middle of June, it was 192, 193. There was other obvious anticipation into
02:03this, people speculating. Then you got the preliminary news. There's a good level there
02:09for you. There's always level. 203.30 was your high to end May, got right back up to that area.
02:16That's where you're trading right now, which is 203.50. You got back up to that May high.
02:22If you did buy it on this news and stuff, you want immediate follow-through through this,
02:27or at least hold this support off the open. If not, you can see that closing price,
02:34all-time high. J.P. Morgan comes in at 205.88. Boy, that day it did not close well, I believe.
02:44Yeah, it sold off from that area. 205.88, all-time high here in J.P. Morgan.