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Get filing alertsJPMorgan raises $3B via new 6.100% preferred stock with common dividend restrictions
Filed May 7, 2026 · Period ending May 6, 2026 · ~1 min read
Key Changes
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JPMorgan issued 300,000 shares of new Series PP Preferred Stock at $10,000 per share (3M depositary shares), raising $3 billion in preferred equity capital with a 6.100% fixed dividend rate that resets over time.
Item 3.03 — Material Modification to Rights of Security Holders verify on EDGAR → -
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If JPMorgan skips dividends on Series PP preferred stock, the company cannot pay common stock dividends or dividends on junior preferred until it catches up—creating a payment hierarchy that subordinates common shareholders during financial stress.
Item 3.03 — Material Modification to Rights of Security Holders verify on EDGAR → -
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The company filed a Certificate of Designations with Delaware on May 6, 2026, formally establishing the rights and terms of the new Series PP Preferred Stock class.
Item 5.03 — Amendments to Articles of Incorporation or Bylaws verify on EDGAR → -
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The offering closed May 7, 2026, through J.P. Morgan Securities and other underwriters under JPMorgan's existing shelf registration statement (Form S-3, File No. 333-285537).
Item 8.01 — Other Events verify on EDGAR →
Summary
JPMorgan Chase completed a $3 billion preferred stock offering on May 7, 2026, issuing 300,000 shares of new 6.100% Series PP Preferred Stock through an underwritten public offering. The new preferred shares carry a $10,000 liquidation preference per share and were converted into 3 million depositary shares for easier trading.
This capital raise strengthens JPMorgan's regulatory capital position and provides a relatively low-cost funding source given current market conditions. Common shareholders should understand the new payment hierarchy. If JPMorgan ever skips a dividend on the Series PP preferred stock, the company is contractually prohibited from paying common dividends until it catches up on preferred payments.
While JPMorgan has never suspended common dividends in modern history and remains highly profitable, this structural subordination is now permanent. The 6.100% rate suggests the market views JPMorgan credit as strong—comparable preferred issues from weaker banks carry higher rates. Watch JPMorgan's quarterly earnings for any commentary on capital allocation strategy. The $3 billion raise may signal preparation for regulatory capital requirements, acquisition opportunities, or simply opportunistic financing at attractive rates. The company's ability to consistently pay both preferred and common dividends without interruption will depend on sustained profitability and regulatory capital levels.
Section-by-Section Diff
Event · Item 5.03 — Amendments to Articles of Incorporation or Bylaws
Item 5.03 — Amendments to Articles of Incorporation or Bylaws filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
On May 6, 2026, the Company filed a Certificate of Designations, Powers, Preferences and Rights with the Secretary of State of the State of Delaware, establishing the rights, preferences, privileges, qualifications, restrictions and limitations relating to the Series PP Preferred Stock (the “Certificate of Designations”).
JPMorgan Chase created a new class of preferred stock called Series PP Preferred Stock by filing formal designation documents with Delaware. This establishes the specific terms and rights for this new security, which typically precedes an issuance to raise capital or meet regulatory requirements. The actual terms (dividend rate, conversion rights, liquidation preference) are detailed in the attached Certificate of Designations exhibit.
Event · Item 8.01 — Other Events
Item 8.01 — Other Events filed; see Key Changes for terms.
Show 1 minor / wording change
Added in current filing · verify on EDGAR →
The sale of the Depositary Shares was made pursuant to the Company’s Registration Statement on Form S-3 (File No. 333-285537), as amended.
The offering was conducted under JPMorgan's existing shelf registration statement (Form S-3, File No. 333-285537). This is a standard capital-raising mechanism that allows the company to issue securities from a pre-registered pool without filing a new registration for each offering.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 17, 2026 · How we verify