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Morgan Stanley (NYSE:MS) will increase its quarterly dividend by 8.8% and its board reauthorized a $20B multi-year stock repurchase program after the lender passed the Federal Reserve’s 2024 stress test, it said on Friday.
The company will pay a new quarterly dividend of $0.925 starting in Q3 2024, up from the current $0.85 per share.
This marks the third straight year in which Morgan Stanley (MS) raised its dividend by $0.075, CEO Ted Pick noted.
As a result of the stress test, MS expects its stress capital buffer to be 6.0% from Oct. 1, 2024 to Sept. 30, 2025.
Together with other features of the regulatory capital framework, the SCB results in an aggregate U.S. Basel III Standardized Approach Common Equity Tier 1 (CET1) ratio of 13.5%. The firm’s U.S. Basel III Standardized Approach CET1 ratio was 15.0% as of March 31, 2024.