Morgan Stanley Boosts Quarterly Dividend, Reauthorizes New Share Repurchase Policy

Morgan Stanley's MS board of directors announced a share appreciation policy.

Dividend: The company raised its quarterly common dividend per share to $0.85 from $0.775, with a stock dividend expected to be declared in Q3 2023.

Share Repurchase: The company reauthorized a multi-year share repurchase program of up to $20 billion without a defined expiration date, beginning in Q3 2023. 

Related: JPMorgan, Wells Fargo And Morgan Stanley To Pay Higher Dividends After Clearing Fed Stress Test

"The results of the Federal Reserve's stress test demonstrate the durability of our transformed business model. We remain committed to returning capital to our shareholders and are raising our dividend by 7.5 cents. In addition, we are renewing our previously announced $20 billion multi-year share repurchase authorization. These decisions reflect the resilience of our franchise, particularly Wealth and Investment Management, and our strong capital position," said James P. Gorman, Chairman and CEO.

Last month, the Federal Reserve System released its CCAR 2023 results, with Morgan Stanley expecting to be subject to a Stress Capital Buffer (SCB) of 5.4% from October 1, 2023, to September 30, 2024. 

The SCB resulted in an aggregate U.S. Basel III Standardized Approach Common Equity Tier 1 (CET1) ratio of 12.9% vs. U.S. Basel III Standardized Approach CET1 ratio of 15.1% as of March 31, 2023. 

Also Read: Over $541B Could Exit US Banking System In 'Severely Adverse' Scenario, Fed Warns

Price Action: MS shares are trading higher by 0.41% at $85.75 premarket on the last check Monday.