When is a good time to buy JP Morgan stock? Is it a good time to buy JP Morgan stock now in 2012. How to buy JP Morgan stock shares? Is it the right time to invest in a J.P. Morgan stocks shares purchase, especially after the dividend hike and stress test results?
For the last several months JP Morgan stock and the banking sector has been under serious depression in the stock market. In fact most of the prevailing stock market advice was just to stay away from banks and financial institutions in the stock market. There were other sectors of the market that promised better returns with less risk. Plus as a rule stock market investors hate any company or sector that is heavily regulated by government intervention. And the banking sector was totally under the government control, including being on the hook to repay loans to the federal government. Some financial ETFs pay dividends but even their ETF yields could not overcome the market’s pressure.
Enter the stress test and now we have a clear line in the sand between winners and losers in the bank stocks . J.P. Morgan has emerged as one of the lucky banks to pass the stress test and it has raised its dividend by 20%. This makes JP Morgan one of the attractive dividend paying bank stocks if you decide to buy into the risks of the sector .So should you buy J.P. Morgan stock. It depends, remember that the banking sector competes with all of the sectorsv in the market for your investment money, and you have to figure out when is a good time to buy JP Morgan stock, you still have to time it right when you invest, buy or sell . Just because J.P. Morgan is doing well on a government balance sheet does not mean that the stock market will automatically reward it with increased price performance. Also bank stocks are still tied to the somewhat fragile global and domestic economic recovery that can affect them. In other words banking stocks are affected by the global economy and unemployment. However if you are one of those people who see the banks as great dividend paying stocks along with the financial bull ETFs that pay dividends, then maybe JP Morgan or some hybrid of its stock options and ETFs that correlate closely with the stock price could be a welcome addition to your portfolio.