SPY - JPMorgan: Solid Dividend Growth Stock With More Upside Potential
2024-04-23 23:55:29 ET
Summary
- JPMorgan has outpaced the S&P 500 in total return due to its strong price growth from growing revenues across segments.
- Although the starting dividend yield is only 2.5%, JPM has great dividend growth metrics with 9 years of consecutive raises.
- Despite trading at a higher valuation, there is still upside potential. My dividend discount model estimates a fair value of $225 per share.
- The dividend has grown at a CAGR of 10.8% over the last decade, making this a great dividend growth stock.
Overview
JPMorgan ( JPM ) has been one of the strongest performers within my dividend growth portfolio. I was lucky enough to start a position in April 2020 around $92 per share. Now that the price has run up over 100% since my initial position, I decided it would be a good time to take a look at the business and reassess to determine whether or not I should continue holding on to my position. Even within the last one-year time frame, you may find yourself with the same question, as the price has now run up over 33%. The price run has allowed JPM to outperform the total return of the S&P 500 ( SPY )....
JPMorgan: Solid Dividend Growth Stock With More Upside Potential