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JP Morgan is a stock that we own for about 160 clients in New York portfolios. For the record, we have about 700 clients there, in total.
JP Morgan is one of the world's largest banks. In our view it is well-positioned to benefit from an expanding global economy, which is increasingly financialised. Also, the use of technology in core operations would lower costs and increase profits for the business.
That has mostly worked out according to plan. JP Morgan shares have been volatile, and went down when the whole market went down, but are back trading close to their all-time highs. Their first quarter results out last week showed that they weathered the Covid-19 storm rather well and could write back some bad debt provisions raised a year ago. Their equities trading division has had a bumper year.
The company held its dividend pay-out at 90 cents per share. At this level they are on a dividend yield of 2.35%. They went on dishing out dividends right through last year. They are a fortress.
This is a good share to hold, if you are a conservative investor and can stomach the up and downs of bank stocks in recessionary cycles. Those looking for something more exciting in the financial sector could consider PayPal instead.
