Morgan Stanley delivered one of the biggest surprises to investors by announcing it would double its dividend to 70 cents a share in the third quarter. Some analysts had been expecting a boost of about 50 cents a share from the current 35 cents.
The bank also said it would increase spending on share repurchases, and the Wall Street giant’s shares rose as much as 3.7% in after-market trading following the announcement.
Morgan Stanley CEO James Gorman said in the announcement that the bank could return so much capital because of the excess it has accumulated over several years. The action, he said, “reflects a decision to reset our capital base consistent with the needs we have for our transformed business model.”
