NEW YORK—JPMorgan Chase increased its quarterly dividend 10 percent to $1.65 per share, pending board approval, after reporting a record second quarter in which net income reached $21.2 billion.
The $21.2 billion figure, equivalent to $7.70 per share, is the largest quarterly profit ever recorded by a U.S. bank and came in well ahead of consensus estimates near $5.72 per share. Earnings excluding significant items reached $16.9 billion, or $6.14 per share.
The dividend increase comes shortly after the Federal Reserve's annual stress test results and reflects the strength of JPMorgan's balance sheet. The bank is the largest U.S. financial institution by assets and market capitalization.
Strong market activity, loan demand and a revival in investment banking have driven record profitability across large U.S. banks. JPMorgan has led that trend.
JPM shares trade near $341, close to the 52-week high of $351.24, and have risen approximately 22 percent from their 52-week low, outperforming much of the financial sector over the past year.
The bank's market capitalization stands at $919 billion, putting it within striking distance of the $1 trillion threshold few companies have reached.
The valuation remains reasonable despite the rally. The stock trades at 15.1 times forward earnings and 2.6 times book value against an 18 percent return on equity and margins above 20 percent—a combination that justifies the premium over regional peers.
Wall Street analysts hold a consensus Moderate Buy rating. Some project the stock reaching $420, citing diversified earnings and superior operational performance.
The 10 percent dividend increase lifts the annualized payout to a forward yield of 1.9 percent. That trails some regional banks, but JPMorgan's dividend history reflects a preference for earnings growth over yield.
JPMorgan raised its 2026 expense forecast to $107.5 billion from $105 billion, attributing the increase to higher volume and revenue-related costs.
Analysts expect JPMorgan's adjusted earnings per share to grow 19.3 percent year-over-year to $24.27 for the fiscal year ending December 2026.
