JPMorgan Chase pays a dividend of 90% per share for a yield of 2.3%.
If your goal is to buy a stock that has great growth potential and at the same time a high dividend yield then JPMorgan Chase could be your first choice. It is by far the most stable stock.
It is the largest Bank in the United States comma at the same time it provides other financial services. Let us look at the reason why this company is the one that will bring you profits in the future.
The success story of this company is not just a rumor among investors, the history of this company is full of victories and today it holds a leading position. If we take such a parameter as revenue, the company showed solid 13% every year. At the same time, its securities showed an increase of 16% over the same period.
If you remember the global financial crisis, it is this company has not lost its importance. Last year was not the best for the banking sector, but JPMorgan Chase lost only 5%, but this year, they showed outstanding growth, which is estimated at 24%. If we consider the level of profitability, here we will see the figure of 58%.
Analyzing the success of this company, we can assume that was the key to success, firstly it is a reliable and the largest bank in America, at the same time, this company is a leader in investment, including in asset management. So the bank keeps its profits in almost all cycles.
By whatever metrics we compare the banks, JPMorgan Chase will be in the lead. The company has shown almost 10% higher profitability than its competitors, and in terms of efficiency, which in numerical terms is about 58%, has significantly outperformed all of its closest competitors. The company has quite a large margin of safety and is able to withstand even the most difficult times. For example, the company’s free funds are almost 500 billion, which will save not only from inflation. Common equity is above the minimum set by regulators.
In early June, the company’s CEO said that the company is now at the stage of accumulating money in order to choose the most successful entry points for investment. The company is prepared for rising inflation and almost any non-standard situation.
The company is part of the S&P 500, and the quarterly payout of $0.9 per share is significantly higher than the index average. These payouts have been virtually unchanged recently, and the payout ratio is 26%.
The company has not increased its payout this year, but the company’s CFO has said that he intends to increase the dividend payout by 10%. The company is trying to strike a balance, if, for example, the dividends are too high, it will distract from other more important matters at the same time dividends should not be low, not competitive.
Being in the market leaders, the company has accumulated a lot of experience has a lot of free funds in order to develop, pay competitive dividends, this is what investors can count on.