Morgan Stanley (MS, Financial) has announced a significant 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 dividend expected to be declared by the company's Board of Directors in the third quarter ending September 30, 2025.
In addition to the dividend increase, Morgan Stanley's Board has reauthorized a multi-year common equity share repurchase program of up to $20 billion. This program, which does not have a set expiration date, will commence in the third quarter. The share repurchases will be conducted at prices deemed appropriate by the company, taking into account various factors such as current market conditions, the company's capital position, and future economic and earnings outlook.
Furthermore, the Board of Governors of the Federal Reserve System has published the summary results of its 2025 supervisory stress tests. As a result, Morgan Stanley expects to be subject to a Stress Capital Buffer (SCB) of 5.1% from October 1, 2025, to September 30, 2026, under current regulatory standards.
The Federal Reserve has also issued a proposed rulemaking that could alter the standards for calculating SCBs for large bank holding companies. Morgan Stanley has indicated that it will provide updated information on regulatory capital standards in response to any final rulemaking that may affect its SCB.
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