JPMorgan's Durable Dividend Growth Sets It Apart from Bank of America

JPMorgan Chase and Bank of America have both raised their dividends recently, but only one bank has a strong track record of sustaining dividend growth even in downturns.

The crisis history of the two banks is telling: JPMorgan cut its quarterly dividend from $0.38 to $0.05 in 2009, then recovered to as much as $0.25 by 2011. Bank of America dropped to just $0.01 and stayed there through 2013.

JPMorgan's capital cushion also sets it apart: the bank has a significantly higher common equity Tier 1 (CET1) ratio, at 14.1%, compared to Bank of America's 11.2%. This means JPMorgan has more room to keep raising its dividend even if markets turn.

JPMorgan's earnings mix also leans on Wall Street, with a focus on trading revenue that can be volatile. In contrast, Bank of America's steady income comes from spread lending and net interest income.