JPMorgan's Sturdy Capital Cushion Makes It a Dividend Darling

JPMorgan Chase and Bank of America are two major banks that have raised their dividend payouts recently, but which one is more reliable?

To answer this question, we need to look at three key measures: dividend record under stress, capital cushion, and earnings mix.

JPMorgan's quarterly dividend has risen to $1.65 from $1.50, while Bank of America's payout has increased to $0.32 from $0.28.

A look at the crisis history shows that JPMorgan has cut its dividend less severely and recovered faster than Bank of America.

JPMorgan's capital cushion is also stronger, with a CET1 ratio of 14.1% compared to Bank of America's 11.2%.

This means that JPMorgan has more room to raise its dividend even in a downturn.