5. JPMorgan Chase
Shares of JPMorgan Chase (JPM) closed at $45.00 Monday, returning 36% year-to-date, following a 20% decline during 2011.
The shares trade for just over eight times the consensus 2013 earnings estimate of $5.51 a share, among analysts polled by Thomson Reuters.JPMorgan's shares trade for 1.4 times tangible book value, according to HighlineFI. Following the completion of the Federal Reserve's annual bank stress tests last Tuesday, JPMorgan announced that it would increase its quarterly dividend by a nickel to 30 cents, and that its board of directors had authorized a $15 billion stock buyback program. Up to $12 billion in buybacks may take place during 2012, with the remaining $3 billion authorized for the first quarter of 2013. Based on the increased quarterly payout, the shares have a dividend yield of 2.67%. Bank of America Merrill Lynch analyst Guy Moszkowski rates JPM a "Buy," with a $46 price objective, and said that the company's total payout was "75% better than anticipated," since the analyst had expected, and implied a "total payout ratio of ~75% of 2012E earnings, vs. our expectation of 50%." Moszkowski estimates JPMorgan Chase will earn $4.59 a share during 2011, followed by 2013 EPS of $4.94. Interested in more on JPMorgan Chase? See TheStreet Ratings' report card for this stock.
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