JPMorgan Chase to boost dividend, adopts new stock buyback program after stress test results

JPMorgan Chase (NYSE:JPM) plans to boost its quarterly dividend to $1.50 per share for Q3 2025 from its current $1.40 per share, and authorized stock buybacks up to $50B, the company said on Tuesday, after receiving results from the Federal Reserve’s.

The company’s preliminary stress capital buffer (“SCB”) is 2.5%, the Fed’s minimum, down from 3.3% for 2024.

“The board’s intended dividend increase, our second this year, represents a sustainable level of capital distribution to our shareholders and is supported by our strong financial performance,” Chairman and CEO Jamie Dimon said. “The new share repurchase program provides the ability to distribute capital to our shareholders over time, as we see fit.”

The Wall Street bank disclosed its 2025 Federal Reserve stress test results, showing that its common equity tier 1 capital ratio would have dropped to as low as 13.7%, well above the Fed’s 4.5% required minimum, in a hypothetical recession. That compared with its actual Q4 2024 CET1 capital ratio of 15.7%.

Its supplementary leverage ratio dipped as low as 5.6% in the severely adverse scenario from 6.1% in Q4 2024.

Its total projected loan losses were $60.7B, or a 4.7% portfolio loss rate.

JPMorgan Chase (NYSE:JPM) stock rose 0.5% in Tuesday after-hours trading.