J.P. Morgan Increases Dividend and Approves Stock Buyback

Strategic Insights -

J.P. Morgan & Co. Incorporated announced a significant increase in its regular quarterly dividend to $0.81 per share, marking an 8 percent rise from the previous $0.75 per share. The company also approved the purchase of up to 7 million shares of its common stock to mitigate the dilutive impact of employee benefit plans. This move comes as the firm continues to invest in its employee compensation structure while maintaining a strong financial position.

Key Takeaways:

  • The Board of Directors of J.P. Morgan & Co. Incorporated declared an increase in the regular quarterly dividend to $0.81 per share from $0.75 per share.
  • The dividend increase represents an 8 percent rise from the previous payout and will be payable on January 12, 1996, to stockholders of record as of December 26, 1995.
  • The company approved the purchase of up to 7 million shares of its common stock to lessen the dilutive impact on earnings per share of employee benefit plans.
  • The regular common stock dividend will be paid out annually, with the new dividend annualized at $3.24 compared to $3.00.
  • A dividend has also been declared on the Adjustable Rate Cumulative Preferred Stock Series A at the rate of 5.00 percent per annum and in the amount of $1.25 per share for the quarter ending December 31, 1995.
  • The purchase of up to 7 million shares may be made periodically in 1996 or beyond in the open market or through privately negotiated transactions.
  • The firm purchased approximately 7 million shares for its employee benefit plans in 1995.
  • Richard A. Mahony, Press contact, and Ann B. Patton, Investor contact, are listed as the points of contact for further information.

Statistics:

  • 8 percent increased dividend from $0.75 per share to $0.81 per share.
  • 7 million shares of common stock approved for purchase to lessen dilutive impact.
  • 7 million shares purchased for employee benefit plans in 1995.
  • $0.81 per share new dividend amount.
  • $3.00 to $3.24 annualized dividend increase.
  • 5.00 percent annual rate of dividend on Adjustable Rate Cumulative Preferred Stock Series A.

Sources:

  • BUSINESS WIRE press release, December 13, 1995
  • J.P. Morgan & Co. Incorporated, NYSE: JPM