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9 Bank Stocks That May Rise On Rich Payouts

Matthew Johnston

Bank stocks have underperformed the S&P 500 this year and have struggled to stage any kind of a rebound after falling from their previous highs. Many banks plan to boost dividends after passing the Federal Reserve’s latest stringent round of stress tests, and that could fuel a nice boost to share prices of a select number of U.S. financial firms. The Fed now is allowing many banks to return a greater portion of their earnings to shareholders, which is exactly what they are doing. Banks plan to increase dividends by 25% on average, says JPMorgan Chase & Co. analyst Vivek Juneja.