Morgan Stanley Announces 7.5 Cents Dividend Increase and Authorization of a Renewed $20 Billion Multi-Year Common Equity Share Repurchase Program

Morgan Stanley, a leading global financial services firm, has announced a significant increase in its quarterly common stock dividend and the reauthorization of a multi-year common equity share repurchase program. The firm's Board of Directors has approved a 7.5 cents per share increase in the quarterly common stock dividend, taking it to $1.00 per share, effective in the third quarter of 2025. In addition, the Board has reauthorized a multi-year common equity share repurchase program of up to $20 billion, without a set expiration date, also commencing in the third quarter of 2025.

Key Takeaways:

• Morgan Stanley will increase its quarterly common stock dividend to $1.00 per share from $0.925 per share, effective in the third quarter of 2025, representing a 7.5 cents per share increase.
• The firm's Board of Directors has reauthorized a multi-year common equity share repurchase program of up to $20 billion, without a set expiration date, commencing in the third quarter of 2025.
• The share repurchases will be exercised at prices the firm deems appropriate, subject to various considerations, including current market conditions, the firm's capital position, and future economic and earnings outlook.
• The firm's U.S. Basel III Standardized Approach Common Equity Tier 1 (CET1) ratio was 15.3% as of March 31, 2025, compared to an aggregate U.S. Basel III Standardized Approach CET1 ratio of 12.6% under current regulatory standards.
• The Board of Governors of the Federal Reserve System has issued a proposed rulemaking that, if adopted, would change the standards by which large bank holding companies' Stress Capital Buffers ("SCBs") are calculated.
• Morgan Stanley remains committed to consistently growing its quarterly dividend and is raising it by 7.5 cents to $1.00 per share, as stated by Ted Pick, Chairman and Chief Executive Officer.

Statistics:

• Quarterly common stock dividend: $1.00 per share
• Multi-year common equity share repurchase program: up to $20 billion
• Effective date of dividend increase: Third quarter of 2025
• Effective date of share repurchase program: Third quarter of 2025
• Previous quarterly common stock dividend: $0.925 per share
• U.S. Basel III Standardized Approach Common Equity Tier 1 (CET1) ratio: 15.3% as of March 31, 2025
• Aggregate U.S. Basel III Standardized Approach CET1 ratio under current regulatory standards: 12.6%

Sources:

• Morgan Stanley, Form 8-K, July 1, 2025
• Morgan Stanley, Press Release, July 1, 2025
• Board of Governors of the Federal Reserve System, Proposed Rulemaking, June 27, 2025
• Morgan Stanley's Annual Report on Form 10-K for the year ended December 31, 2024