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4 Banks Poised to Deliver Big Capital Returns

We think these banks will see strong dividend growth and improving returns on equity.

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U.S. Banks have been on a tear over the last couple years, and with interest rates continuing to rise and regulatory relief already occurring, profits should continue to grow at a fast pace for the industry. Banks also tend to spend a large amount of their income on dividends and share buybacks, which should increase per share numbers even more. We recently published a piece on July 8 titled, "New Regulatory Proposals Will Change Stress Test Landscape," which included our bank capital return projections and a recap of CCAR 2018. Based on these projections we have been able to isolate key winners and losers for dividend growth and improving returns on equity as banks are able to release some of their excess capital.

Today we will cover our three top picks for increasing capital returns and dividends. 

Eric Compton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.