When a stock delivers strong returns, it’s good news, but when it also pays out dividends, its appeal to investors increases significantly, especially if there are further dividend rate hikes. This scenario unfolded with JPMorgan’s (NYSE: JPM) stock.
Despite an earnings report that slightly missed estimates, JPM shares continued their positive trend, gaining 0.59%. This increase is likely bolstered by the announcement of a quarterly dividend of $1.15 per share, marking a 9.5% increase from the previous dividend of $1.05.
JPM stock continues to outshine the S&P 500 index by a significant margin, as shown by its Relative Standard Deviation (RSD), which has recently reached a new all-time high.
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What draws investors to JPM stock?
Besides dividends, investors focus on the fundamentals of a certain stock and company, and this is where JPMorgan aces the test, especially considering earnings per share (EPS).
Impressively, JPMorgan Chase has grown EPS by 31% per year, compound, in the last three years, with a singular exception of the latest quarter where they decreased by almost 30%.
Insider sales could spell a different story for JPM stock
Despite JPMorgan’s strong performance and the rise in dividends, Jamie Dimon, the CEO of JPMorgan, recently sold 821,778 shares of his company’s stock, amounting to over $150 million.
These transactions wouldn’t be notable if it weren’t for their timing. Dimon had previously purchased JPM stock before strong market performances lifted its value.
However, this time is different. Dimon’s sale of JPM shares marks the first time he has done so, indicating that the stock might be entering a challenging phase.
It’s uncertain whether Dimon’s first-ever sale signals trouble for JPM stock or if it will persist in delivering strong performance and rewarding its investors. Only time will tell.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
