Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

JPMorgan Chase & Co. (JPM) Is A Compelling Long-Term Investment

When you’re talking about dividend paying companies (and specifically dividend growth), you’re likely to think about the normal host of characters – The Coca-Cola Co’s (NYSE:KO), Johnson & Johnson’s (NYSE:JNJ) and Procter & Gamble Co’s (NYSE:PG) of the world.

You think about large firms that have not only paid but also increased their dividends for years. And then the other companies – the smaller firms or those that have much shorter dividend increase streaks – are easy to forget.

To be frank this could be a perfectly reasonable focus for the dividend investor. If you only concentrate on companies that have increased their payouts for decades, you stand a solid chance of narrowing down your focus to only the highest quality businesses. This tactic doesn’t guarantee success, but it certainly leads you in the right direction.

Yet I would contend that there are often other areas of interest – outside of the typical Dividend Aristocrats or Dividend Kings – that can be equally as compelling.

The firm that I would like to talk about for this article is JPMorgan Chase & Co. (NYSE:JPM).


Source: JPMorgan Investor Relations

Among smart money investors tracked by Insider Monkey, the sentiment towards JPMorgan remained flat as 100 funds reported long positions as of the end of 2015. These investors amassed $7.58 billion worth of stock or roughly 3.10% of the outstanding shares. Alex Snow’s Lansdowne Partners and billionaire Ken Fisher’s Fisher Asset Management reported holding 20.16 million shares and 13.99 million shares of JPMorgan, respectively, in their last 13F filings.

JPMorgan had a long and impressive dividend increase streak for quite some time…

Then the financial crisis came, and what was once a $0.38 quarterly dividend was slashed to just $0.05. For an income investor relying on the cash dividends from this security, that’s not going to be good news. And from this fact alone, it’s easy to write this security off.

However, I would like to make a few points before getting to today’s situation.

First, the dividend was effectively “forced” to be cut. This doesn’t give much solace to the retiree living off dividends, but it is nonetheless interesting to note that JPMorgan had the ability to keep making its payment but the company faced regulators.

Next, often times of distress actually tend to be quite good periods for investment.

And finally, the previous mark has now been restored and is actually higher as the quarterly dividend sits at $0.44.

So let’s keep an open mind and think a bit about the future.

Follow Jpmorgan Chase & Co (NYSE:JPM)
Trade (NYSE:JPM) Now!

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.