Please ensure Javascript is enabled for purposes of website accessibility

JPMorgan Chase Declares Fresh Common Stock Dividend; Yield is Just Under 4%

By Eric Volkman – May 18, 2020 at 8:26PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The big bank is forging ahead with shareholder payouts despite a steep fall in Q1 profitability.

JPMorgan Chase (JPM -1.86%) has elected to maintain its current common stock dividend policy. On Monday, the company's board of directors declared that the sprawling bank's next quarterly payout would be $0.90 per share for that class of security. This matches each of the company's three most recent distributions, that latest of which was handed out on April 30.

The upcoming dividend is to be paid on July 31 to investors of record as of July 6. As of the most recent closing stock price, its yield is slightly under 4%.

Chase Sapphire Banking card.

Image source: JPMorgan Chase.

JPMorgan Chase is keeping its dividend steady -- at least for now -- despite a significant net profit drop in its latest reported quarter. Its per-share net profit eroded by 71% on a year-over-year basis, while revenue dipped by a relatively light 3%.

The reason for the former plunge was loan-loss provisioning; like nearly every other major U.S. bank and lending institution, JPMorgan Chase is anticipating a sharp increase in loan defaults. The SARS-CoV-2 coronavirus has already had a profound and negative effect on most corners of the economy, and given the hardship many borrowers are facing its likely they will defer repayments at the very least. 

Nevertheless, the company remains profitable for now and as one of the "big four" banks occupies a powerful position on top of the American financial pyramid.

Investors seem to believe in the bank, judging by the 5.3% rise in its share price on Monday. That increase was higher than those the major stock indexes posted on the day.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

JPMorgan Chase & Co. Stock Quote
JPMorgan Chase & Co.
$109.14 (-1.86%) $-2.07

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.