Morgan Stanley (NYSE: MS) has announced an increase in its quarterly common stock dividend to $0.925 per share, up from the current $0.85 per share. This marks the third consecutive year of dividend increases, reflecting the firm's confidence in its business model. Additionally, the board of directors has reauthorized a multi-year common equity share repurchase program of up to $20 billion, effective from the third quarter of 2024.
The firm's regulatory capital framework has also been impacted, with the board of governors of the Federal Reserve System releasing its CCAR 2024 results. As a result, Morgan Stanley expects to be subject to a stress capital buffer (SCB) of 6.0% from October 1, 2024, to September 30, 2025, leading to an aggregate U.S. Basel III standardized approach common equity tier 1 (CET1) ratio of 13.5%. This is a decrease from the firm's U.S. Basel III standardized approach CET1 ratio of 15.0% as of March 31, 2024.
Ted Pick, the chief executive officer of Morgan Stanley, emphasized that these results demonstrate the firm's continued execution of a clear and consistent strategy to raise, manage, and allocate capital for clients. These actions underscore the durability of Morgan Stanley's business model and its commitment to returning value to shareholders.
Morgan Stanley, a leading global financial services firm with a presence in 42 countries, provides a wide range of investment banking, securities, wealth management, and investment management services. This latest announcement reflects the firm's ongoing efforts to optimize its capital structure and maximize shareholder value. The market has reacted to these announcements by moving the company's shares 1.5% to a price of $97.19. For the full picture, make sure to review Morgan Stanley's 8-K report.
