Summary by Moomoo AI
Morgan Stanley announced it will increase its quarterly common stock dividend to $0.925 per share from $0.85, marking an 8.8% rise, effective from Q3 2024. Additionally, the Board has authorized a new multi-year share repurchase program of up to $20 billion, with no set expiration date, also beginning in the third quarter.Following the Federal Reserve's 2024 stress test results released on June 26, Morgan Stanley expects to maintain a Stress Capital Buffer of 6.0% from October 2024 to September 2025. This requirement, combined with other regulatory frameworks, establishes a Common Equity Tier 1 ratio requirement of 13.5%. The firm's current CET1 ratio stands at 15.0% as of March 31, 2024.CEO Ted Pick emphasized that these actions reflect the durability of Morgan Stanley's business model, noting this marks the third consecutive year of a 7.5-cent dividend increase. The share repurchases will be executed based on market conditions, capital position, and future economic outlook.
