Morgan Stanley Paired Its Dividend Hike With a $20 Billion Buyback. Is the Wealth Management Giant a Buy?
Much of this news was already reflected in the stock's recent gains. But that's not necessarily a deal-breaker.
Overview
The results of this year's "stress tests" of the nation's biggest banks are in -- and they were good. All 32 banks under the Federal Reserve's microscope are well capitalized to survive a significant recession. And while not all of them have done so (yet), several of the country's major banks have subsequently increased dividends and stock buybacks after passing this test.
Morgan Stanley (NYSE: MS) is one of these names, recently announcing a 15% increase in its per-share dividend and the reauthorization of a $20 billion stock buyback. For perspective, the stock's forward-looking dividend yield is just under 2.2%, while the company's market cap is $334 billion.
Details
The big question: Is its stock a buy now?
Source
Originally published at www.fool.com.