Jamie Dimon, CEO of JPMorgan Chase (NYSE:JPM) since 2006, intends to sell one million shares from his $1.2 billion stake in the bank starting in 2024, according to a recent SEC filing. The planned sale is part of a strategy for financial diversification and tax-planning purposes. This move marks a significant shift from the approach taken by Warren Buffett, CEO of Berkshire Hathaway (NYSE:BRKa), who has retained all his shares while donating over half to philanthropy.
News of the planned sale resulted in a 0.7% drop in JPMorgan shares in premarket trading to $139.76. In response to this, Dimon reaffirmed his strong belief in the company's prospects and stated his intention to maintain a substantial stake.
Under Dimon's leadership, JPMorgan has consistently performed well against the market and other financial stocks, with an annual return rate exceeding 13% over the past decade. The bank's market capitalization currently surpasses $400 billion, double that of Bank of America.
According to InvestingPro data, JPMorgan's market capitalization is specifically at $409.06 billion, and the bank has a P/E ratio of 8.42, reflecting its low price relative to its earnings. The company's revenue growth has been accelerating, with a growth rate of 18.12% in the last twelve months. This aligns with one of the InvestingPro Tips, which highlights the company's accelerating revenue growth.
JPMorgan is a prominent player in the banking industry, as noted in the InvestingPro Tips. The bank has raised its dividend for 13 consecutive years, indicating its commitment to returning capital to shareholders. This is further supported by the bank's dividend yield of 2.98%.
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