The bank capital return plans: Some banks returning as significant dividend payers.
1) Bank of America was the big winner: A larger-than-expected $5 billion share buyback and a plan to redeem $5.5 billion in preferred shares. No dividend increase, but the buyback was much bigger than most projected — some had anticipated as little as a $1 billion.
2) Some banks are returning as significant dividend payers. Wells Fargo increased the annual dividend to $1.20, some 34 percent above last year and higher than most estimates. The bank now pays out the highest dividend yields of the large banks, about 3.2 percent, with JPMorgan Chase at about 3 percent.
Others are heading toward the significant 3 percent ratio. Capital One Financial went from $0.20 to $1.20, now with a 2.2 percent yield.