The Federal Reserve approved the 18 biggest U.S. banks to pay out billions of dollars of capital to shareholders.
Immediately following the announcement, banks including JPMorgan Chase (JPM) - Get JPMorgan Chase & Co. (JPM) Report , Citigroup (C) - Get Citigroup Inc. Report , Bank of America (BAC) - Get Bank of America Corp Report and Goldman Sachs (GS) - Get Goldman Sachs Group, Inc. (GS) Report releases plans for dividend increases and stock buybacks.
While Wall Street initially met the reports with positivity, with most bank stocks rising following the release, is it the moment to invest in the financials?
Action Alerts PLUS senior analyst Jeff Marks broke down how to approach the big banks.
"We hold Goldman Sachs for Action Alerts PLUS and you know, that we thought the results were great for them. In addition to the dividend boost, they're buying back, I think it's nearly 10% of the market cap, this new buyback, and that's over the next four quarters. So this isn't kind of one of these buybacks where a company announced saying, it's like, yeah, it's over like a three year times time period. This is over the next 12 months," he said.