The big news on the day yesterday was that 15 of the 19 major US Banks passed the Federal Reserve’s stress test. The announcement was scheduled to be released after the market on Thursday, but JP Morgan Chase & Co. (JPM) couldn’t keep a secret and announced they cleared the hurdle, raised their dividend and will repurchase $15 billion of their stock.
Wells Fargo & Company (WFC) raised its dividend more than 80% and said they will buy more stock in 2012 than they did in 2011.
Not to be outdone, Bank of America Corporation Com (BAC) rushed out to say we passed too. However, BAC decided to keep their money to themselves. Maybe they’ll hike their divided too if their customers agree to those $5 debit charges?
BTW – the four that failed are Citigroup, Inc. (C), SunTrust Banks, Inc. (STI), MetLife, Inc. (MET), and Ally Bank (formally GMAC) which is not publicly traded. The tradeable trio isn’t happy about getting a 69% and being called financial flunkies.
MET seemed to be the most confused, their CEO said, “We don’t know how the Fed did its math?” Oh SNAP!
Anyway, the 15 that made the grade are now free to follow JPM’s and BAC’s lead and make their dividend and stock buyback programs public. The Fed set a standard for common dividends not to exceed 30% of net income after taxes.
Top Equity News ran the numbers and expects to see as at least 5 other bailed out banks either up their dividends or buy shares; some will probably do both.
Based on the latest reported numbers, TEN sees this group making announcements as early as today. Many could boost their div payouts handsomely, which could give the stocks some juice.
Capital One Financial Corporation (COF)
KeyCorp (KEY)
PNC Financial Services Group (PNC)
Fifth Third Bancorp (FITB)
U.S. Bancorp (USB)
If you recall, banks hit our emerging buy sector screen yesterday. Although many popped by 4% or more Tuesday, more headroom is available for the sector to move higher. Maybe shares fall a bit. You know, the whole buy the hype sell the news jingle, but after the excitement has passed, fatter dividends and potential price appreciation makes many in the gang of 15 attractive.
Making Bank on Bank Stocks is an article from: 
