Morgan Stanley MS, -0.79% announced late Monday that it will increase its quarterly dividend to 70 cents per share from 35 cents per share, with the payment set to be approved by the board of directors in the third quarter. Morgan Stanley also launched a fresh $12 billion share repurchase program that would run through June 2022. “Over the last many years, Morgan Stanley has generated significant surplus capital and currently has one of the greatest capital buffers in the industry,” said Chief Executive James P. Gorman in a statement. “We are well capitalized to fuel greater expansion in the future.” Separately, Bank of America Corp. BAC, -0.14 percent said it intends to increase its dividend by 17 percent, subject to board approval. Following the results of the Federal Reserve’s “stress tests,” which banks passed last week, Morgan Stanley and Bank of America are among the first to announce share buybacks and dividend increases, paving the door for more. Morgan Stanley’s stock gained more than 3% in extended trading Monday after ending the regular session down 0.8 percent. After a 0.1 percent loss at the close, Bank of America’s stock rebounded 0.3 percent in the extended session. Continue reading
