Investments in Profitable Company: Jp Morgan

JP Morgan Chase Company (JPM) is an American bank that provides international investment and monetary facilities. The bank was established in the year 2000 and has its headquarters located in New York City in the United States. Although the bank was established recently, it was founded based on previous banks and the first of those was founded in 1799. JPM has considered the biggest bank in the United States of America and the bank came in the sixth position among all banks in the world in relation to total assets of $2,535 trillion in 2018. Based on the market capitalization, JPM is the most treasured bank around the globe. Experts are divided on the need to invest in JPM. Several experts argue that people should not invest in JP Morgan chase, because its profits and losses are not guaranteed. On the contrary, due to financial statistics, experts believe that JPM is profitable and maintains a stable stock price. Investors should probably invest in JP Morgan chase for two reasons: JPM is a profitable company and it has high-value stock.

One significant argument why people should invest in JPMorgan Chase is that the bank is a profitable company. This is clear based on the performance of the bank in the period that extends from the time before the crisis to the time after that. Its performance continued to be profitable despite the international economic crisis. It had been stated that the growth of JP Morgan Chase was 67% despite the economic recession. Also, JP Morgan Chase has more than 1,000 organizations, most notably JP Morgan Manhattan Chemical Manufacturing Company, National Bank, and First Bank. Which have been linked to innovation and help in the growth of the US and global economy.

The above figure obviously shows that the JP Morgan Chase total return increased 133% compared to the second-largest bank, Wells Fargo, which had a 95.89% increase in total return. The bank's profit increased by 19% reaching $3.96 billion in parallel with the increase in revenue by 9% or a total of $13.8 billion. There was an increase in the profit in relation to bonds and there was an increase in the credit and car loans. However, there was no change in the credit losses compared to the previous year of $1.3 billion. This tells us that JPM Chase is a strong bank and investors should feel comfortable in utilizing the bank in their investments. This concludes that based on the bank's performance and its growth over time is a string justification to advise investors to invest in JPM.

Another significant reason to invest in JPM is the high value of its shares likely leading to a positive return for investors. This positive return is an excellent reason why investors should invest in this bank. The JPM's essential aim is to develop its strong value for customers to widely invest in this company as a leading stock bank. Furthermore, of the JP Morgan chase, the strongest profits are bank investment and consumer and community banking. In addition to these characteristics, stable growth over the years helps to earn profits and supports the strength of the stock and increases its value. JPM has proved to the investors its ability to hold on to the stock value and even to make the values better. The current JPM annual dividend was $3.20 and this represents an increase of 29% from the previous year. The annual increase in JPM dividends was 5 times and was sustained year-over-year for an average increase of 15.18% per year. This tells us that JPM chase has increased their dividends price compared to previous years. This concludes that the company will have more investors and that the company will have more demands on theirs shares in the stocks. The combination of these factors will lead JPM to have the best return of its shares in the stock compared to other large banks in the last ten years. Moreover, according to CNBC. For example, the deposit of a single dollar in the company in 2008 would be more than $2.6 in ten years. This is a significant increase in investment and is of great potential for investors. These are indicators that JP Morgan has a positive investment that helps the consumer to invest with JPM. This concludes that the bank is trying to bring the best share privileges and the lowest losses to the consumer.

In conclusion, investors should invest in JP Morgan chase bank for two reasons. First, it is a profitable company. The performance of JPM is stable over the years and despite the global crisis, the company is still making profits at a high rate. This was possible due to the presence of many institutions that help the company to increase profit and performance consistently. Another reason to invest in JPM is the high value of their shares that lead to a significant return of investments. JPM has a strong bank investment and consumer and community banking. The bank has shown a stable growth over time leading to a tangible increase in profits. JPM should continue its strategic path to attract more investors and increase its presence throughout the world. Such activities will make the company the bank of choice of millions of customers globally.

References

1. Carter (2018, May 23). If You Invested $1,000 in Jpmorgan 10 Years Ago, Here's How Much You'd Have Now
2. Shawncarterm - https://www.cnbc.com/2018/05/23/if-you-put-1000-in-jpmorgan-10-years-ago-heres-what-youd-have-now.html
3. Maxfield (2017, May 15). 3 Reasons Jpmorgan Chase Stock Is a Buy Right Now (and 2 Reasons It Isn't) -- The Motley Fool
4. https://www.google.com/amp/s/www.fool.com/amp/investing/2017/05/15/3-reasons-jpmorgan-chase-stock-is-a-buy-right-now.aspx
5. Son (2019, April 12). Jp Morgan Shares Surge After Bank Posts Record Profit and Revenue
6. hugh_son https://www.cnbc.com/2019/04/12/jp-morgan-earnings-q1-2019.html
7. Zacks(2019, July 19). Why Jpmorgan Chase (jpm) Is a Great Dividend Stock Right Now
8. https://finance.yahoo.com/news/why-jpmorgan-chase-jpm-great-131501117.html