With the Federal Reserve giving major financial institutions high marks in its annual stress tests, several large banks raised their dividends.

The Federal Reserve said all major banks passed this year’s stress tests, showing they can withstand a hypothetical severe economic downturn.

U.S. banking giants announced plans on Tuesday to raise their third-quarter dividends after clearing the Federal Reserve's annual health check last week. The moves come after the lenders showed they have enough capital to withstand scenarios including a severe economic downturn,