Dow Dividend Checkup: JPMorgan Chase

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves discusses topics from across the investing world.

JPMorgan Chase's shares are still suffering from the trading debacle that was announced back in May. For the year, however, they are down just 3.6%, which is only slightly higher than the Dow's loss for the year (as of June 4). Back in March, the company raised its dividend 20%, and it now has a yield of 3.80%. CEO Jamie Dimon has recently announced that the company will continue to pay that dividend, though it will suspend share buybacks in the wake of the trading problem. Its yield of 3.8% compares well with the Dow average of 3.1%. For comparison, Buffett favorite Wells Fargo pays out 2.8%. John sees serious risks with JPMorgan. Any thesis before the trading disaster would have been about Jamie Dimon's excellent leadership and risk-management skills, but now those have been called into question. John wouldn't invest in this one. Wells Fargo seems like a better choice if you want a bank with a decent yield. And if you're just looking for a blue chip with a solid yield, then Procter & Gamble might be another wise choice.

JPMorgan offers a pretty decent yield for investors at the moment. If you'd like to learn more about some outstanding dividend-payers, The Motley Fool has compiled a special free report outlining our top nine dependable, dividend-paying stocks. It's called "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your copy today at no cost! Just click here to discover the winners we've picked.

John Reeves owns shares of Procter & Gamble. The Motley Fool owns shares of Bank of America, JPMorgan Chase, and Wells Fargo and has the following options: short APR 2012 $21.00 puts on Wells Fargo, short APR 2012 $29.00 calls on Wells Fargo, short OCT 2012 $33.00 puts on Wells Fargo, and short OCT 2012 $36.00 calls on Wells Fargo. Motley Fool newsletter services recommend Procter & Gamble and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Related Tickers

10/28/2016 2:14 PM
JPM $68.67 Down -0.56 -0.81%
JPMorgan Chase CAPS Rating: ****
^DJI $18128.66 Down -41.02 -0.23%
BAC $16.56 Down -0.36 -2.10%
Bank of America CAPS Rating: ****
PG $86.77 Up +0.19 +0.22%
Procter and Gamble CAPS Rating: ****
WFC $46.09 Down -0.32 -0.69%
Wells Fargo CAPS Rating: ****