Morgan Stanley to boost dividend by 8%, reauthorize $20B multi-year buyback program

Morgan Stanley (NYSE:MS) will bump up its quarterly common stock dividend by 8.1% to $1.00 per share, it said on Tuesday, after clearing the Federal Reserve’s 2025 stress test.

In addition, the lender’s board reauthorized a multi-year common stock buyback program of up to $20B, without a set expiration date, starting in Q3 2025.

The bank expects to be subject to a stress capital buffer of 5.1% from Oct. 1, 2025, to Sept. 20, 2026 (down from 6.0% last year), resulting in an aggregate Basel III standardized approach common equity tier 1 ratio of 12.6%, which is down from 15.3% at March 31, 2025.

Should the Fed adopt a proposed rule that would change the standards by which large bank holding companies’ SCBs are calculated, Morgan Stanley (NYSE:MS) will provide updated information on applicable regulatory capital standards in response to a final rulemaking, including any change in its SCB.

MS shares gained 1% in after-hours trading.