Morgan Stanley Stock To Increase Quarterly Dividend By 100%

Morgan Stanley Stock To Increase Quarterly Dividend By 100%

Morgan Stanley's stock (NYSE: MS) has gained 34% YTD, and at its current price of $92 per share, it is trading slightly above its fair value of 89 – Trefis' estimate for Morgan Stanley's valuation. The Federal Reserve released its 2021 Comprehensive Capital Analysis and Review ("CCAR") stress test results on 24 June. While the Fed imposed restrictions on dividend payout and share buyback by large banks in 2020 to preserve capital in light of the Covid-19 crisis, it has cleared all the 23 participating financial institutions this year. As a result of the positive stress test results, Morgan Stanley has decided to increase its common stock dividend by 100% to $0. 70, beginning the third quarter. Further, it announced a share repurchase plan of $12 billion, which will be valid for the next four quarters. Morgan Stanley reported total net revenues of $48. 2 billion for the full year 2020 – up 16% y-o-y. It was primarily due to strong growth in sales & trading investment banking businesses driven by higher trading volumes and a jump in underwriting deals. Further, the wealth management and investment management segments have seen significant growth in client assets – the