If you are looking for shares, which can be trusted and which will bring not only a solid dividend income, but also excellent long-term profit, don't look for anything, except financial services giant JPMorgan Chase
Prospects for JPMorgan Chase
JPMorgan Chase – the largest bank in the UNITED States, but it's also a diversified financial services company, which over the past decade has surpassed all its competitors from large banks. That's why these are dividend stocks., who can be trusted.
- JPMorgan Chase was the most successful bank in the last decade, and today it retains leadership in the industry in almost all respects. For the last 10 JPMorgan Chase's revenue increased by 13% per year year on an annual basis, and its share price rose by 16% in year.
The company also retained its value during the worst financial crisis in more than a decade.. Last year, terrible for banks, JPMorgan Chase's share price fell by just one 5%, outperforming its competitors. This year it has grown by about 24% year to date, which is roughly the average for the banking industry, and the yield for the last year was 58%.
This allows the bank to generate income in all market cycles., unlike most banks, which are more cyclical.
Future returns
If you look at some key metrics for banks., JPMorgan Chase will come forward. Return on equity at the end of the second quarter was 18%, which is much higher, than average for commercial banks 8%.
- Besides, its efficiency coefficient is 58%, which is better, than all its main competitors (efficiency ratio expresses the bank's operating expenses as a percentage of revenue; the lower, all the better).
The banking sector has been growing for several years The banking sector has been growing for several years
JPMorgan is known for its "strong balance sheet", which focuses on efficiency, liquidity and strength of capital, which allows it to withstand difficult markets. He has a coefficient 1 the level of ordinary capital, equal 13%, which is much higher than the minimum, required by the regulatory authorities, and more 500 billion dollars in cash, to guard against uncertainty, including inflation.
“If you look at our balance, We have 500 billion dollars in cash, we actually accumulate more and more money, waiting for the opportunity to invest at higher rates ", – CEO Jamie Dimon told CNBC in June.
“I really expect to see higher rates and higher inflation, and we are ready for this ".
The idea is, to get dividends, which will be "resilient during a severe recession", but at the same time, as Daimon said, “We don't want to raise dividends so high, that it will undermine your ability to do other things ".
Market leader, JPMorgan Chase has sufficient cash, income and stability, to continue to invest in your growth and reward investors with good dividends – which they should look forward to in the coming years.
