JPMorgan Chase & Co. Shares Cross 3% Yield Mark

Forbes

According to DividendChannel.com, in trading on Tuesday, shares of JPMorgan Chase & Co. (NYSE: JPM) were yielding above the 3% mark based on its quarterly dividend (annualized to $1.00), with the stock changing hands as low as $32.31 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF (SPY) back on 12/31/1998 — you would have paid $123.31 per share. Fast forward to 12/31/2010 and each share was worth $125.75 on that date, a mere $2.44 or 2% increase over all those years. But now consider that you collected a whopping $20.53 per share in dividends over the same period, increasing your return to 18.6%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.4%; so by comparison collecting a yield above 3% would appear considerably attractive if that yield is sustainable. JPMorgan Chase & Co. (NYSE: JPM) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index.

In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of JPMorgan Chase & Co., looking at the history chart for JPM below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 3% annual yield.

JPM Dividend History
Date Div*
07/01/11 0.250
04/04/11 0.250
01/04/11 0.050
10/04/10 0.050
07/01/10 0.050
04/01/10 0.050
01/04/10 0.050
10/02/09 0.050
07/01/09 0.050
04/02/09 0.050
01/02/09 0.380
10/02/08 0.380
07/01/08 0.380
04/02/08 0.380
01/02/08 0.380
10/03/07 0.380
07/03/07 0.380
04/03/07 0.340
01/03/07 0.340
10/04/06 0.340
07/03/06 0.340
04/04/06 0.340
01/04/06 0.340
10/04/05 0.340
07/01/05 0.340
04/04/05 0.340
01/04/05 0.340
10/04/04 0.340
07/01/04 0.340
04/02/04 0.340
01/02/04 0.340
10/02/03 0.340
07/01/03 0.340
04/02/03 0.340
01/02/03 0.340
10/02/02 0.340
07/02/02 0.340
04/03/02 0.340
01/02/02 0.340
10/03/01 0.340
07/03/01 0.340
04/04/01 0.340
01/03/01 0.320
10/04/00 0.320
07/03/00 0.320
04/04/00 0.480
01/04/00 0.410
10/04/99 0.410
07/01/99 0.410
04/01/99 0.410
01/04/99 0.360
10/02/98 0.360
07/01/98 0.360
04/02/98 0.720
01/02/98 0.620
10/02/97 0.620
07/01/97 0.620
04/02/97 0.620
01/02/97 0.560
10/02/96 0.560
07/02/96 0.560
01/03/96 0.500
10/04/95 0.500
* Data may be adjusted for splits; we are not responsible for data errors; always verify data with the company.

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JPM+Dividend+History+Chart

According to the ETF Finder at ETF Channel, JPM makes up 23.94% of the Regional Bank HOLDRS ETF (AMEX: RKH) which is trading higher by about 2.6% on the day Tuesday.

See what other ETFs contain JPM »

See what other stocks are held by RKH »

JPM operates in the Banking & Savings sector, among companies like Citigroup (NYSE:C), up 2.95%, and KeyCorp (NYSE: KEY) trading up by about 3%.

 


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