The quarterly earnings season is once again upon us. The nation’s big banks are first to report, including JP Morgan Chase (JPM) which reported strong quarterly numbers. On a year-over-year basis, JP Morgan saw strong growth across all of its relevant metrics, including revenue and earnings-per-share.

JP Morgan proved that it remains one of the strongest banks in the U.S., if not the strongest. It has an excellent business model and continues to have a positive outlook. It also pays a solid dividend yield of nearly 3%, making it an attractive stock for dividend growth investors.

Earnings Overview

For the 2019 first quarter, JP Morgan reported total revenue of $29.85 billion, up 4.7% from the same quarter last year. Earnings-per-share of $2.65 increased 12% year-over-year. Both revenue and EPS beat analyst expectations. Average core loans increased 5% for the quarter firm-wide.

JP Morgan has many large businesses that lead their respective categories. In its consumer bank, core loans and deposits increased 4% and 3%, respectively. Client investment assets increased 13% to $312 billion.

In investment banking, JP Morgan remained #1 in global investment banking fees last quarter. Debt underwriting revenue increased 21%, while advisory revenue increased 12%.

The company’s asset management business also performed well, ending the quarter with assets under management (AUM) of $2.1 trillion, up 4%.

JP Morgan reported strong return on equity of 16%, up a percentage point from the same quarter last year. This bodes well for the health of the company’s balance sheet.

JP Morgan remained highly profitable, with strong EPS of $2.65. This was a double-digit growth rate, and particularly impressive because analyst consensus estimates called for JP Morgan’s EPS to decline for the first quarter.

Bank On Dividend Growth From JP Morgan

JP Morgan has been one of the best dividend growth stocks in the Dow Jones Industrial Average over the past decade. Investors likely recall the Great Recession, when many big banks (including JP Morgan) that cut their dividends.

Indeed, JP Morgan slashed its annual per-share dividend payout from $1.52 in 2007, to $0.53 in 2008. JP Morgan cut its dividend again, paying just $0.20 per share in 2009 at the depth of the recession. Things certainly looked bleak for JP Morgan during the recession, but it has come back in a big way in the years since.

JP Morgan has increased its dividend each year in the eight years since 2010. Dividends paid in 2018 totaled $2.48 per share, which represented an increase of 22% from 2017. Further dividend increases are very likely, as the company continues to grow EPS and maintains a modest payout ratio.

Consensus analyst forecasts call for JP Morgan to generate EPS of $9.68 for 2019. With a current annualized dividend of $3.20 per share, JP Morgan has an expected dividend payout ratio of 33%.

JP Morgan stock offers a nearly 3% yield and barring a recession the company could continue to raise its dividend each year. The stock continues to be highly attractive for dividend growth investors.