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15 handpicked stocks

Banks Unleash Value

Major US banks are flexing their financial muscle by increasing dividends and launching buyback programs after acing the Fed's annual stress tests. These moves signal strength and confidence, creating opportunities for investors seeking both income and growth.

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Author avatar

Han Tan | Market Analyst

Updated 1 day ago | Published at July 2

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

BAC

Bank of America Corp.

BAC

Current price

$46.94

Bank of America was explicitly mentioned as increasing its dividend by 8% following the successful stress test, directly benefiting from the event.

JPM

JPMorgan Chase & Co.

JPM

Current price

$290.49

JPMorgan Chase, as the largest US bank, benefits from the overall positive assessment of the banking sector's health, supporting its own capital retur...

JPMorgan Chase, as the largest US bank, benefits from the overall positive assessment of the banking sector's health, supporting its own capital return programs.

WFC

Wells Fargo & Co.

WFC

Current price

$77.10

Wells Fargo was highlighted as being expected to raise its dividend by about 11.3%, showing strong confidence after passing the stress tests.

About This Group of Stocks

1

Our Expert Thinking

These banks have demonstrated remarkable resilience by passing the Federal Reserve's rigorous stress tests. This validation has unleashed a wave of shareholder-friendly actions including dividend increases and share buybacks, creating a timely opportunity to invest in financially robust institutions.

2

What You Need to Know

This collection features major US banks that form the backbone of the economy through their consumer, commercial, and investment banking services. These blue-chip institutions offer both growth potential through share price appreciation and defensive characteristics through stable dividend payments.

3

Why These Stocks

We've carefully selected banks that have explicitly announced enhanced capital return plans after passing stress tests, along with well-positioned peers likely to follow suit. This curated group provides exposure to financially healthy institutions with proven ability to reward shareholders.

Group Performance Snapshot

14 of 15

Stocks Rated Buy by Analysts

14 of 15 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

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Cash Is Flowing Back to Shareholders

These banks aren't just sitting on their cash reserves. They're actively returning money to shareholders through bigger dividends and buybacks, creating multiple ways for investors to benefit.

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Stress-Tested Strength

These aren't just any banks – they've proven their resilience through the Fed's rigorous stress tests. This stamp of approval means they can withstand even severe economic downturns while maintaining shareholder returns.

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Perfect Timing Opportunity

The announcements of dividend increases and buybacks create a timely window for investment before the full market adjustment to this positive news. Early investors may capture additional upside as these actions unfold.

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