JPMorgan Chase gets Federal Reserve OK for $6.4B stock buyback, 10 percent dividend increase

Markets Associated Press

JPMorgan Chase says the Federal Reserve cleared its plan to buy back up to $6.4 billion in stock and raise its dividend.

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The New York company says it plans to buy the stock between April 1, 2015 and June 30, 2016. It will raise its dividend to 44 cents from 40 cents, returning about $1.64 billion to shareholders every quarter.

On Thursday the Fed said JPMorgan Chase & Co. and 30 other banks passed its annual "stress tests." The tests are designed to make sure the largest banks in the U.S. are strong enough to withstand a severe U.S. and global recession and keep lending.

The Fed approved most banks' capital plans on Wednesday but ordered Bank of America and units of Deutsche Bank and Santander to revise their plans.