Morgan Stanley, a global financial services firm, has made announcements regarding its dividend and stock buyback program. Morgan Stanley plans to increase its quarterly common stock dividend and reauthorize a multi-year common equity share repurchase program. These moves demonstrate Morgan Stanley's commitment to returning capital to its shareholders and highlight the strength of its business model and capital position.

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Dividend Increase

Starting from the third quarter of 2023, Morgan Stanley's quarterly common stock dividend will be increased to $0.85 per share, up from the current $0.775 per share. This represents a dividend increase of 7.5 cents per share. The decision to raise the dividend reflects Morgan Stanley's confidence in its transformed business model and the positive results of the Federal Reserve's stress test.

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Stock Buyback Program

The Firm's Board of Directors has reauthorized a multi-year common equity share repurchase program, which will be in effect from the third quarter of 2023. Under this program, Morgan Stanley is authorized to repurchase up to $20 billion worth of its own common shares. The buybacks will be executed at prices determined by Morgan Stanley, taking into consideration factors such as current market conditions, the firm's capital position, and future economic and earnings outlook.