This Financial Stock Is Up 264% Since I Bought It -- Here's Why I'm Not Selling

As an investor with a philosophy focused on stability and consistent growth, I've been fortunate to see one of my holdings, Morgan Stanley (MS), increase by a remarkable 264% since I purchased it. While the temptation to sell and lock in profits is strong, I've decided to hold onto this stock for several compelling reasons.

First and foremost, Morgan Stanley has demonstrated a strong track record of financial performance. In the fourth quarter of 2024, the company reported earnings per share (EPS) of $7.95, up from $5.45 in the same quarter of 2023, representing a 46% increase. Revenue also grew by 25% year-over-year to $61.50 billion. This growth is supported by strong performance across all business segments, including Institutional Securities, Wealth Management, and Investment Management.

Morgan Stanley's Institutional Securities segment, which includes investment banking and trading, saw a significant increase in revenue. The Wealth Management division also experienced growth, with record asset management revenue and a rise in fee-based client assets from $1.983 trillion to $2.347 trillion. Investment Management revenue also rose due to increased average assets under management and higher performance-based income.

The company's expense efficiency ratio improved to 69% from 84% in the same quarter last year, indicating better cost management and operational efficiency. However, provisions for credit losses increased to $115 million from just $3 million, indicating a cautious approach, particularly concerning commercial real estate charge-offs.

Morgan Stanley has consistently increased its dividend payout, which can attract income-oriented investors and provide a steady return on investment. The dividend per share has grown by 9.23% year-over-year, and the current dividend yield is 2.68%.

The company maintains a strong capital position, with a Standardized Common Equity Tier 1 Capital ratio of 15.9%. This provides a solid foundation for capital management and regulatory compliance, ensuring the company's stability and long-term growth prospects.

Morgan Stanley's CEO, Ted Pick, has a strong track record in the industry, having previously served as the co-head of the firm's global investment banking division. His leadership, along with the company's experienced management team, contributes to the stability and growth of the organization.

In conclusion, Morgan Stanley's consistent dividend growth, strong financial performance, robust capital position, experienced management, and diversified business model make it an attractive choice for investors seeking stability and consistent growth. While the stock has already increased by 264% since my purchase, I believe that the company's fundamentals and long-term prospects warrant holding onto the stock and allowing it to continue to grow.