No Dividend Increase Coming From JP Morgan in 2010

Chief Executive Officer Jamie Dimon said yesterday that investors will likely see no dividend increase coming from JP Morgan in 2010.


At an investor conference in February, Dimon had speculated about a possible dividend increase “this year”. In April, Dimon wrote in his annual letter to shareholder that JPM may raise its annual dividend to $.75 – $1.00 per share if certain conditions are met. JPM currently only pays out $.20 per share in annual dividends.


However, Dimon was much more cautious when speaking with small-business owners at JPM’s headquarters in New York on Tuesday. He believes it would be “too ambitious” for the bank to increase their dividend in 2010.


JPM shares have fallen 11% in 2010 and have underperformed the 5% decline in the Dow Jones index. However, they have vastly outperformed the large declines in some of the chief competitors like Morgan Stanley [[MS]], Citigroup [[C]] and Goldman Sachs [[GS]].


For now dividend investors will have to be content in knowing that they own the premier Wall Street firm, even if it does only offer a marginal 0.5% dividend yield.  


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