Investing.com - A handful of the nation's biggest financial firms plan to reward shareholders with big stock buyback plans and generous dividend hikes.
The plans were announced after the banks passed their annual stress test by the Federal Reserve.
JPMorgan Chase (NYSE:JPM)'s quarterly dividend increase is the largest, rising to 80 cents a share. It will buy back up to $20.7 billion in stock.
Citigroup (NYSE:C) will raise its quarterly dividend to 45 cents a share, while buying back $17.6 billion in stock.
Morgan Stanley (NYSE:MS)'s dividend will rise to 30 cents a share. Its buyback is worth $4.7 billion.
Wells Fargo (NYSE:WFC) is increasing its dividend to 43 cents a share. At $24.5 billion, its stock buyback plan is the largest.
Goldman's dividend hike is the smallest proportionately. The company will buy back $5 billion in stock.
American banks posted record profits in the first quarter of this year.
They are among the biggest beneficiaries of the Trump administration's corporate tax cut.