Bloomberg News

Dimon Says Raising Dividend Is ‘Very Small Capital Decision’

January 09, 2012

(Updates with more comments from Dimon in the fourth and fifth paragraphs.)

Jan. 9 (Bloomberg) -- JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said raising the company’s 25-cent dividend wouldn’t have as much impact on capital as other measures.

The bank may renew a stock-buyback program at least as big as last year, when the New York-based company repurchased $8 billion of shares, Dimon said today in an interview with CNBC. Acquiring shares is generally a faster way to distribute more capital to shareholders than increasing dividends, he said.

Raising the dividend is “a very small capital decision relative to other capital decisions,” he said.

Dimon, 55, said he supports buying back shares when the price falls below intrinsic value. The bank is trading below book value, meaning investors believe the firm is worth less than its stated assets. The stock has fallen 34 percent from a high in May 2007 to $35.30 on the New York Stock Exchange today.

“We’re not the kind of people that will buy back stock at any price,” Dimon said. “We prefer to spend that money when the stock is cheap, but it may not be so cheap by the time we have the opportunity to do that.”

--Editors: David Scheer, William Ahearn.

To contact the reporter on this story: Dawn Kopecki in New York at

To contact the editor responsible for this story: David Scheer at

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