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Does Morgan Stanley's Liquidity Cushion Support Its Capital Returns?
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Key Takeaways
MS averaged $385.9B liquidity at Dec. 31, 2025, with $341.7B long-term debt and $26.2B due in 12 months.
MS raised its quarterly dividend 8% to $1.00 and has $17.4B left on a $20B repurchase authorization.
Morgan Stanley's investment-grade ratings and 2025 stress-test results support continued capital returns.
Morgan Stanley (MS - Free Report) enjoys a strong liquidity position. As of Dec. 31, 2025, its average liquidity resources were $385.9 billion. As of the same date, long-term debt was $341.7 billion, with $26.2 billion expected to mature over the next 12 months.
MS maintains investment-grade long-term credit ratings of A1, A- and A+ from Moody’s, S&P Global Ratings and Fitch Ratings, respectively, and a stable outlook. The ratings indicate a strong financial position with low credit risk. This, along with the company’s resilient earnings and strong fundamentals, supports robust capital returns.
MS cleared the 2025 stress test impressively and announced an 8% hike in quarterly dividend to $1.00 per share. Over the past five years, the company has increased its dividends five times at an annualized growth rate of 17.16%. Further, Morgan Stanley has a dividend payout ratio of 39%.
Additionally, in July 2025, Morgan Stanley reauthorized a multi-year share repurchase program of up to $20 billion (no expiration date). As of Dec. 31, 2025, $17.4 billion worth of authorization remained available under the plan.
With robust liquidity, a strong capital base and earnings strength, Morgan Stanley is well-positioned to sustain higher dividends and aggressive share repurchases.
How is MS Placed in Capital Returns Compared With Peers?
Goldman’s capital distribution activities have been impressive over the years. In January 2026, the company raised its dividend 12.5% to $4.50 per share. Over the past five years, the company has increased its dividends six times at an annualized growth rate of 20.81%
It also has a share repurchase plan in place. In the first quarter of 2025, the board approved a share buyback program of up to $40 billion of common stock. At the end of 2025, Goldman had nearly $32 billion worth of shares available under authorization.
JPMorgan continues to reward shareholders handsomely. It cleared the 2025 stress test impressively and announced an increase in its quarterly dividend by 7% to $1.50 per share, as well as authorized a new share repurchase program worth $50 billion. As of Dec. 31, 2025, almost $33.8 billion in authorization remained available.
This was the second time that JPMorgan hiked its quarterly dividends in 2025. In March 2025, it raised its quarterly dividend by 12% to $1.40 per share. In the last five years, it hiked dividends six times, with an annualized growth rate of 10.05%.
Morgan Stanley’s Price Performance, Valuation and Estimates
Morgan Stanley’s shares have gained 30.2% over the past year.
1-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MS trades at a 12-month trailing price-to-tangible book (P/TB) of 3.34X, above the industry average.
P/TB Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Morgan Stanley’s 2026 earnings suggests a 8.6% rise on a year-over-year basis, while 2027 earnings are expected to grow at a rate of 7%. In the past 30 days, earnings estimates for 2026 and 2027 have moved marginally upward.
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Does Morgan Stanley's Liquidity Cushion Support Its Capital Returns?
Key Takeaways
Morgan Stanley (MS - Free Report) enjoys a strong liquidity position. As of Dec. 31, 2025, its average liquidity resources were $385.9 billion. As of the same date, long-term debt was $341.7 billion, with $26.2 billion expected to mature over the next 12 months.
MS maintains investment-grade long-term credit ratings of A1, A- and A+ from Moody’s, S&P Global Ratings and Fitch Ratings, respectively, and a stable outlook. The ratings indicate a strong financial position with low credit risk. This, along with the company’s resilient earnings and strong fundamentals, supports robust capital returns.
MS cleared the 2025 stress test impressively and announced an 8% hike in quarterly dividend to $1.00 per share. Over the past five years, the company has increased its dividends five times at an annualized growth rate of 17.16%. Further, Morgan Stanley has a dividend payout ratio of 39%.
Additionally, in July 2025, Morgan Stanley reauthorized a multi-year share repurchase program of up to $20 billion (no expiration date). As of Dec. 31, 2025, $17.4 billion worth of authorization remained available under the plan.
With robust liquidity, a strong capital base and earnings strength, Morgan Stanley is well-positioned to sustain higher dividends and aggressive share repurchases.
How is MS Placed in Capital Returns Compared With Peers?
Morgan Stanley’s two close peers are Goldman Sachs (GS - Free Report) and JPMorgan (JPM - Free Report) .
Goldman’s capital distribution activities have been impressive over the years. In January 2026, the company raised its dividend 12.5% to $4.50 per share. Over the past five years, the company has increased its dividends six times at an annualized growth rate of 20.81%
It also has a share repurchase plan in place. In the first quarter of 2025, the board approved a share buyback program of up to $40 billion of common stock. At the end of 2025, Goldman had nearly $32 billion worth of shares available under authorization.
JPMorgan continues to reward shareholders handsomely. It cleared the 2025 stress test impressively and announced an increase in its quarterly dividend by 7% to $1.50 per share, as well as authorized a new share repurchase program worth $50 billion. As of Dec. 31, 2025, almost $33.8 billion in authorization remained available.
This was the second time that JPMorgan hiked its quarterly dividends in 2025. In March 2025, it raised its quarterly dividend by 12% to $1.40 per share. In the last five years, it hiked dividends six times, with an annualized growth rate of 10.05%.
Morgan Stanley’s Price Performance, Valuation and Estimates
Morgan Stanley’s shares have gained 30.2% over the past year.
1-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MS trades at a 12-month trailing price-to-tangible book (P/TB) of 3.34X, above the industry average.
P/TB Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Morgan Stanley’s 2026 earnings suggests a 8.6% rise on a year-over-year basis, while 2027 earnings are expected to grow at a rate of 7%. In the past 30 days, earnings estimates for 2026 and 2027 have moved marginally upward.
Earnings Estimates Trend
Image Source: Zacks Investment Research
MS currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.