Wow. My screens actually froze from all the activity from JPM. Within seconds the stock just spiked. I thought the Fed indicated they were going to release the result on Thursday, but the news out of JPM makes the results pretty obvious.
A bit of perspective from what JPM told the market:
Prior to today JPM was trading with a dividend yield of 2.4%. JPM raised the dividend by 20%. To get back to a yield of 2.4%, JPM will have to trade at 50. Yup, 50.
This goes hand-in-hand with the aggressive buy back announced.
I was waiting to sell my light JPM position at 46, around book value. But with this news, I added and will wait for 50.
This is tremendously bullish. (And as the treasury yield continues to rise, we can start talking about normalized earnings valuations as well.)
update: I got the dividend increase wrong. Dividend was increased by 20%. The current dividend is $1.00. The forward dividend is $1.20. The yield become 2.7%.