Morgan Stanley has announced an increase in its quarterly common stock dividend, raising it to $1.00 per share from the previous $0.925 per share. This change will take effect with the expected declaration by the Board of Directors in the third quarter of 2025.
The company's Board of Directors has also reauthorized a multi-year common equity share repurchase program, allowing for up to $20 billion in buybacks without a set expiration date. These repurchases will be made at times and prices deemed appropriate by Morgan Stanley, taking into account factors such as market conditions and the firm's financial outlook.
Ted Pick, Chairman and CEO of Morgan Stanley, commented on these developments: “Our improved stress test results reflect the strength and durability of our franchise. We have a scaled and global business that drives the Firm’s financial strength, generating durable returns and supporting our ongoing flexibility to invest in our businesses and return capital to shareholders. We remain committed to consistently growing our quarterly dividend and are raising it by 7.5 cents to $1.00 per share.”
Following the release of CCAR 2025 results by the Federal Reserve on June 27, Morgan Stanley expects a Stress Capital Buffer (SCB) of 5.1% under current regulations from October 1, 2025, to September 30, 2026. This contributes to an aggregate U.S. Basel III Standardized Approach Common Equity Tier 1 (CET1) ratio of 12.6%. As of March 31, 2025, Morgan Stanley's CET1 ratio stood at 15.3%.
The Federal Reserve has proposed changes that could affect how SCBs are calculated for large bank holding companies. Morgan Stanley plans to update relevant regulatory capital standards information if these changes are adopted.
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