JPMorgan Chase: Financial Winner

According to Mosby, JPMorgan, Wells Fargo (WFC) and Winston-Salem, N.C.-based BB&T (BBT) "could continue to exceed the market expectations for earnings through 2014 by 10% or more. Moreover, we expect each to increase their dividend, following this year's CCAR process, enough to create a dividend yield on their respective current stock prices of greater than 3%."

CCAR stands for Comprehensive Capital Analysis and Review, which is the tedious regulatory term for the Federal Reserve's annual stress test of the nation's largest financial firms. The Federal Reserve is scheduled to release the stress test results on March 14, and investors can be sure to see many big banks announce dividend increases and/or share buybacks the same day.

Mosby estimates that JPMorgan Chase will increase its quarterly payout by $0.10 to $0.40 a share, while Wells Fargo will raise its quarterly dividend to $0.30 from $0.25, with BB&T raising its dividend to $0.25 from $0.23.

Guggenheim's price target for JPMorgan Chase is based on multiples of 10.5 times the firm's 2013 EPS estimate for the bank, and on 1.4 times estimated year-end tangible book value.

JPM data by YCharts

Interested in more on JPMorgan Chase? See TheStreet Ratings' report card for this stock.

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-- Written by Philip van Doorn in Jupiter, Fla.

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Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

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