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The Fed's Bank Stress Tests Are Good News for Stock Dividends -- Here's Why

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The recent results of the Federal Reserve's latest stress tests of large U.S. banks are reason for cheer among dividend investors. That's because the potential for for dividend growth in the financial sector. The stress tests attempt to determine whether a financial institution is capable of withstanding an economic downturn, making the tests a natural indicator of company health. The tests have two parts. In the "quantitative" part, the central bank determines whether the institutions...

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