Morgan Stanley doubles dividend, BofA dividend to rise by 17%

 Morgan Stanley doubles dividend, BofA dividend to rise by 17%

Morgan Stanley
MS,
-0.79%

said late Monday it will double its quarterly dividend to 70 cents a share, from 35 cents a share, beginning with the dividend expected to be approved by the board in the third quarter. Morgan Stanley also announced a new increased share buyback program of up to $12 billion through June 2022. “Morgan Stanley has accumulated significant excess capital over the past several years and now has one of the largest capital buffers in the industry,” Chief Executive James P. Gorman said in a statement. “Going forward we remain amply capitalized to drive further growth.” Separately, Bank of America Corp.
BAC,
-0.14%

said it plans on a 17% dividend increase, subject to board approval. Morgan Stanley’s and Bank of America’s moves are among the first of an expected volley of share buybacks and dividend increases following the results last week of the Federal Reserve “stress tests” in which banks passed, opening the way. Shares of Morgan Stanley rose more than 3% in the extended session Monday after ending the regular trading day down 0.8%. Bank of America shares rose 0.3% in the extended session after a 0.1% decline at the close.

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