Most U.S. banks raised their dividend payouts as top U.S. banks passed the Fed's stress test with strong capital. Play ETFs like KBWB, XLF and VFH.

Wall Street’s largest lenders boosted their dividends after passing this year’s Federal Reserve stress tests, a hurdle that regulators made easier to clear by softening some of the requirements laid out in previous years.

The largest U.S. banks on Tuesday announced fresh plans for stock buybacks and dividends following the Federal Reserve’s disclosure of positive annual stress test results, a sign that some of the world’s most systemically important lenders are sitting on more than enough capital.