Is JPMorgan Chase's Dividend Justified?

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The following video is part of our "Motley Fool Conversations" series, in which senior analyst Anand Chokkavelu, CFA, discusses topics around the investing world.

JPMorgan Chase has reiterated its pledge to keep its dividends humming even as it cuts its $15 billion share-buyback program. Why? For one, the annual run rate on the dividends is a fraction of the cost of the buybacks. Add to that the stigma that lowering dividends creates, and JPMorgan will cling to its quarterly dividends. Anand explains.

If JPMorgan Chase's complex balance sheet isn't for you, operations get simpler the smaller you go in banking. The Motley Fool featured one of these simpler banks in its brand-new free report: "The Stocks Only the Smartest Investors Are Buying." We invite you to download a free copy. To find out the name of the bank Warren Buffett would probably be interested in if he could still invest in small banks, just click here.

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