Might JPMorgan Chase (NYSE: JPM) shareholders be getting an unexpected gift from the big bank this holiday season? Speaking at an investor conference, CEO Jamie Dimon said that it may consider paying a special, one-time dividend should the stock reach “a certain price.” This would be done instead of increasing share repurchases as a way to return some of the bank’s excess capital.
Dimon did not specify how much that dividend would be, nor what the target share price was.
The yield from JPMorgan Chase’s regular quarterly dividend has thinned as the stock price has rise; so far this year, it’s up by more than 26%. Much of this gain has occurred in the past month following Donald Trump’s victory in the presidential election. (There is heavy speculation that Trump and the Republican-led Congress will repeal at least certain parts of the Dodd-Frank Act, which limits the conduct of the finance industry.)
At the moment, the yield on that dividend is 2.3%, which is actually one of the higher figures among major U.S. banks. Citigroup‘s payout currently stands at just over 1.1%, while PNC Financial‘s yield is slightly under 2%. That said, JPMorgan Chase, Citigroup, and PNC Financial have all increased their distributions since last decade’s financial crisis.
As they are in the broader market, special dividends in the banking sector are rare. There have only been a few this year, and none have come from the “Big Four” grouping of American banks that includes JPMorgan Chase and Citigroup. Late last month, Hawaii’s Territorial Bancorp declared a $0.20 per share special distribution, while lucky shareholders of Northwest regional lender Columbia Banking System received four special dividends ranging from $0.18 to $0.20 per share.
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