CCAR Preview: Will KeyCorp (KEY) Investors Have Cause to Cheer? – Citigroup Inc. (C), JPMorgan Chase & Co. (JPM)

How much will KeyCorp (NYSE:KEY) share with investors?
After last year’s test, KeyCorp (NYSE:KEY) wasted no time announcing its plan to repurchase up to $344 million worth of stock, as well as its intention to reevaluate its dividend payment. The bank raised its payout to $0.05 per share in May, up from its previous $0.03 per share.

Considering how swimmingly KeyCorp (NYSE:KEY) performed on the latest round of stress tests, I would expect a respectable increase in both of those metrics. Knowing that the Fed would frown on any increases over 30% of anticipated post-tax net income, however, the bank will doubtless keep its ambitions well below that level. Even with that limitation, I expect KeyCorp investors will feel a strong urge to cheer in the very near future.

The article CCAR Preview: Will Keycorp Investors Have Cause to Cheer? originally appeared on Fool.com and is written by Amanda Alix.

Fool contributor Amanda Alix has no position in any stocks mentioned. The Motley Fool owns shares of Bank of America, Citigroup, JPMorgan Chase, and KeyCorp.

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