JPMorgan Takes Dividend Lead Over Bank of America

JPMorgan Chase (NYSE:JPM) and Bank of America (NYSE:BAC) are two banking giants that have recently raised their quarterly dividends. But which one is more reliable for investors saving for retirement? A closer look at their crisis histories, capital cushions, and earnings mixes reveals that JPMorgan takes the lead.

JPMorgan's quarterly dividend has risen to $1.65 from $1.50, payable on October 31, for an annualized forward payout of $6.60. This is a significant increase from its $0.38 payout in 2009 during the last financial crisis. In contrast, Bank of America's quarterly check increased to $0.32 from $0.28, a forward rate of $1.28.

One key measure that separates JPMorgan from Bank of America is their capital cushions. The Federal Reserve runs large banks through a simulated severe recession each year, and the results determine how much buffer they must hold above the regulatory minimum. As of June 2026, JPMorgan's CET1 ratio stood at 14.1%, while Bank of America reported 11.2%. This means that JPMorgan has far more room to sustain dividend growth even in a downturn.

Bank of America's earnings mix is steadier and more rooted in deposits and lending, but it also makes them more vulnerable to rate changes. A 100 bps rate drop would slash their net interest income by $2.2B annually. In contrast, JPMorgan's revenue has been driven by trading desks, which can reverse quickly.

While Bank of America wins for investors who prioritize earnings rooted in deposits and lending, JPMorgan takes the lead for those seeking dividend reliability. As both banks' third-quarter reports approach, it will be crucial to monitor their CET1 ratios and market revenue to see if this verdict holds.