Morgan Stanley announces 100% increase in quarterly dividend from $ 0.35 to $ 0.70 per share and authorization to repurchase up to $ 12 billion of common stock over the next 12 months
NEW YORK–(COMMERCIAL THREAD) – Morgan Stanley (NYSE: MS) has announced that it will double its quarterly common stock dividend to $ 0.70 per share, from the current $ 0.35 per share, starting with the common dividend expected to be declared by the board of directors of the company in the third quarter of 2021. In addition, the company announced a new authorization to repurchase outstanding common shares of up to $ 12 billion until June 30, 2022.
James P. Gorman, Chairman and CEO of Morgan Stanley, said, “The board of directors has approved a 100% increase in our dividend and an increase in our share buyback program to $ 12 billion. Morgan Stanley has accumulated significant excess capital over the past several years and now has one of the largest capital buffers in the industry. The actions taken by the board reflect a decision to redefine our capital base in line with the needs we have for our transformed business model. In particular, Wealth Management and Investment Management provide stable and sustainable earnings which support a significantly higher payout ratio. Going forward, we remain amply capitalized to continue our growth. ”
On June 24, 2021, the Federal Reserve Board of Governors released its 2021 CCAR results, following which Morgan Stanley will be subject to a 5.7% Stress Capital Buffer (SCB) from October 1, 2021 to September 30. , 2022. Combined with other features of the regulatory capital framework, this SCB results in an overall Tier 1 capital (CET1) ratio of the Basel III standardized approach in the United States of 13.2%. The company’s US Basel III standardized approach CET1 ratio was 16.7% as of March 31, 2021.
Morgan Stanley is a leading global financial services firm providing investment banking, securities, wealth management and investment management services. With offices in more than 41 countries, the firm’s employees serve clients around the world, including businesses, governments, institutions and individuals. For more information on Morgan Stanley, please visit www.morganstanley.com.
This press release contains forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made, which reflect management’s current estimates, projections, expectations, assumptions, interpretations or beliefs, and which are subject to risks and uncertainties. which may cause material differences between actual results. Morgan Stanley does not undertake to update any forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements. For a discussion of additional risks and uncertainties that could affect Morgan Stanley’s future results, financial condition or capital, please see the “Forward-Looking Statements” preceding Part I, Point 1, “Competition” and “Monitoring and regulation ”in Part I., Item 1,“ Risk Factors ”in Part I, Item 1A,“ Legal Proceedings ”in Part I, Item 3,“ Management’s Discussion and Analysis of the Financial Position and Results of operations ”in Part II, Item 7 and Risk Disclosures” in Part II, Item 7A, in Morgan Stanley’s Annual Report on Form 10-K for the year ended December 31, 2020 and other items in Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, including any changes thereto.