Banks increase dividends, share buyback plans
Recently freed from restrictions imposed by regulators on coronaviruses, America’s largest banks on Monday announced plans to return tens of billions of dollars to their shareholders over the next year in the form of dividends and share buybacks. .
It’s a signal that banks are looking to reward their shareholders after losses caused by last year’s pandemic. But it’s also a sign that banks currently see few places to turn over their big profits other than handing them over to their shareholders.
Bank of America has announced plans to increase its dividend by 17% to 21 cents per share, continuing its $ 25 billion share buyback. Truist, the bank formed during the BB&T and SunTrust merger, said it plans to increase its dividend to 48 cents per share, from 45 cents per share.
Morgan Stanley has announced that it will double its quarterly dividend, from 35 cents per share to 70 cents per share, with payments scheduled to begin in the third quarter. The bank will also repurchase $ 12 billion of its outstanding shares over the next year.
JPMorgan Chase said it plans to increase its quarterly dividend to $ 1 per share, from 90 cents. The bank said it plans to continue with its $ 30 billion share buyback plan announced late last year. JPMorgan is expected to post a profit of around $ 40 billion this year.
S&P 500 hits record
Most US stocks edged down on Monday, but the strength of several large tech companies pushed indices further to record highs.
The S&P 500 added 0.2% after rebounding between small gains and losses throughout the morning. The index is coming off its best week since February as optimism grows about a strengthening economy and expectations that the Federal Reserve will keep interest rates low for some time.
Facebook was among the tech winners, gaining 4.2% after a federal judge dismissed antitrust lawsuits brought against it by the Federal Trade Commission and a coalition of state attorneys general.
Mastercraft OK Share Buyback Program
MasterCraft Boat Holdings, Inc. on Monday announced plans to repurchase up to $ 50 million of its common stock over the next three years after the Vonore, Tennessee-based boatbuilder said it entered into a new $ 160 million credit facility, consisting of a term loan and a $ 100 million revolving credit facility.
The new debt deal will provide MasterCraft with additional liquidity and financial flexibility, according to company CEO Fred Brightbill.
âMasterCraft maintains a disciplined and thoughtful approach to capital allocation, and the Board’s approval of a share buyback program reflects the confidence we have in our company, our growth strategy, our portfolio. full of brands and our ability to execute what we think is a tremendous opportunity in front of us, âhe said.
Justice blocks trial over coal exports
The United States Supreme Court ruled on Monday that it would not allow Wyoming and Montana to sue Washington state for denying a key permit to build a coal export dock that would have sent coal into Asia.
Justices Clarence Thomas and Samuel Alito voted in the minority on the decision not to let the two states sue the third in a case that would have gone directly to the High Court.
The two major coal states have sought to boost exports to support an industry that has been declining for a decade as US utilities switch to electricity, gas and renewables.
The Washington State Department of Ecology in 2017 denied a permit for the export dock, saying the facility on the Columbia River would cause “irreparable and unavoidable” environmental damage.
Denying the permit violated the U.S. Constitution’s ban on interstate trade protectionism, the coal states argued in 2020.
Washington state officials weren’t trying to block Wyoming and Montana coal, but were acting because of “valid environmental concerns” about the wharf, state attorneys argued in a more court case. late in the year.
– Compiled by Dave Flessner