The Federal Reserve is scheduled to release the results from the second round of its annual bank stress tests after the market close on Thursday June 28, and expectations are high that big boosts in dividends and share repurchases will be approved as part of the process. In fact, Barron’s projects that these returns of capital to shareholders will equal about 100% of U.S. bank profits earned over the next 12 months. The enhanced payouts are bound to increase the attractiveness of bank stocks to investors.
