Bank Dividends Return

Hey all, Happy Saturday…

The return of big bank dividends is really something spectacular to behold.  The Zero Percent Interest Rates Forever policy – also known as Operation: Guaranteed Bank Profits – has reflated the big guys to the point where they can complete the transfer of wealth that began some two and a half years ago…

From Bloomberg:

U.S. bank investors may be rewarded with an extra $22 billion annually after government tests showed the industry has regained enough strength to boost dividends and share buybacks.

JPMorgan Chase & Co. (JPM), Wells Fargo & Co. (WFC) and Goldman Sachs Group Inc. (GS) were among six lenders that disclosed more than $16.2 billion in share buybacks and $5.4 billion of annualized dividend increases yesterday, according to data compiled by Bloomberg. The banks made their announcements after learning they passed a Federal Reserve review of their financial health.

They’re paying out again…Life is good.

I’m an investor so I love dividends, I also love the fact that I have a bond alternative in high-yielding equities these days for my clients.  I’m just not sure if I love the conditions under which these cash payouts have been made possible.

Source:

JPMorgan Leads $22 Billion Increase in Payouts, Buybacks After Fed Review (Bloomberg)