Morgan Stanley announced plans to significantly increase shareholder capital returns, following the release of the Federal Reserve's 2026 stress test results. The company's Board of Directors approved a 15% increase in the quarterly common stock dividend and reauthorized a new $20 billion share repurchase program.
Key Details
- Dividend Increase: The quarterly dividend will increase by 15% to $1.15 per share, up from $1.00 per share, effective in the third quarter of 2026.
- Share Repurchase Program: A multi-year common equity buyback program of up to $20 billion was reauthorized, with no set expiration date, beginning in the third quarter of 2026.
- Regulatory Context: The announcement follows the Federal Reserve's stress test, which did not impact the company's current Stress Capital Buffer (SCB) requirement of 4.3%.