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State Street (STT) Hikes Quarterly Cash Dividend by 10.1%
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State Street Corp. (STT - Free Report) recently hiked its quarterly cash dividend. The company declared a quarterly cash dividend of 76 cents per share, marking an increase of 10.1% from the prior payout. The dividend will be paid out on Oct 11 to shareholders of record as of Oct 1.
This hike is in line with the company’s previous announcement to increase its dividend post its stress test 2024 results. The results demonstrated that STT’s stress capital buffer was well below the 2.5% minimum while its common equity tier 1 ratio requirement was maintained at 8%. This reinforces the financial strength and resiliency of the company under adverse circumstances.
Prior to the recent hike, STT increased its dividend by 9.5% to 69 cents per share in July 2023. The company has increased its dividend five times during the last five years, with an annualized dividend growth of 7.56%.
Currently, its payout ratio is 35% of earnings. This indicates that it retains sufficient earnings for reinvestment and future growth initiatives while delivering lucrative returns to its shareholders.
Considering STT’s closing price of $84.49 on Jul 19, its dividend yield is currently 3.6%.
Apart from regular dividend payouts, State Street has an existing share repurchase program in place. This January, the company’s board of directors authorized the repurchase of up to $5 billion worth of outstanding common stock. The program has no expiration date. As of Jun 30, 2024, roughly $4.7 billion worth of authorization remained available. Prior to this, STT had announced a share buyback plan in January 2023, with a $4.5 billion authorization, which expired on Dec 31, 2023.
STT maintains a solid liquidity position. As of Jun 30, 2024, the company had a total debt worth $38.7 billion (comprising other short-term borrowings, accrued expenses, and other liabilities and long-term debt), while cash and due from banks and interest-bearing deposits with banks were $91.6 billion. Given a robust capital and liquidity position, the company is expected to sustain its capital distribution activities. Through this, State Street will keep enhancing shareholder value.
Over the past year, shares of State Street have gained 23%.
Earlier this month, FS Bancorp, Inc. (FSBW - Free Report) announced a quarterly dividend hike and an additional share repurchase program. The company declared a dividend of 27 cents per share, reflecting a 3.8% increase from the prior payout. The dividend will be paid out on Aug 21, 2024, to shareholders of record as of Aug 7.
Notably, the company has been paying quarterly cash dividends for 46 quarters. Currently, FSBW’s payout ratio is 22% of its earnings.
Similarly, The PNC Financial Services Group, Inc. (PNC - Free Report) announced a hike in its quarterly common stock dividend. The company declared a quarterly cash dividend of $1.60 per share, marking an increase of 3% from the prior quarter. This dividend will be paid on Aug 5 to shareholders of record as of Jul 15, 2024.
Before the recent hike, PNC raised its dividend by 3.3% to $1.55 per share in July 2023. Also, the company has a five-year annualized dividend growth of 8.84%. At present, its payout ratio is 46% of earnings.
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State Street (STT) Hikes Quarterly Cash Dividend by 10.1%
State Street Corp. (STT - Free Report) recently hiked its quarterly cash dividend. The company declared a quarterly cash dividend of 76 cents per share, marking an increase of 10.1% from the prior payout. The dividend will be paid out on Oct 11 to shareholders of record as of Oct 1.
This hike is in line with the company’s previous announcement to increase its dividend post its stress test 2024 results. The results demonstrated that STT’s stress capital buffer was well below the 2.5% minimum while its common equity tier 1 ratio requirement was maintained at 8%. This reinforces the financial strength and resiliency of the company under adverse circumstances.
Prior to the recent hike, STT increased its dividend by 9.5% to 69 cents per share in July 2023. The company has increased its dividend five times during the last five years, with an annualized dividend growth of 7.56%.
Currently, its payout ratio is 35% of earnings. This indicates that it retains sufficient earnings for reinvestment and future growth initiatives while delivering lucrative returns to its shareholders.
Considering STT’s closing price of $84.49 on Jul 19, its dividend yield is currently 3.6%.
Apart from regular dividend payouts, State Street has an existing share repurchase program in place. This January, the company’s board of directors authorized the repurchase of up to $5 billion worth of outstanding common stock. The program has no expiration date. As of Jun 30, 2024, roughly $4.7 billion worth of authorization remained available. Prior to this, STT had announced a share buyback plan in January 2023, with a $4.5 billion authorization, which expired on Dec 31, 2023.
STT maintains a solid liquidity position. As of Jun 30, 2024, the company had a total debt worth $38.7 billion (comprising other short-term borrowings, accrued expenses, and other liabilities and long-term debt), while cash and due from banks and interest-bearing deposits with banks were $91.6 billion. Given a robust capital and liquidity position, the company is expected to sustain its capital distribution activities. Through this, State Street will keep enhancing shareholder value.
Over the past year, shares of State Street have gained 23%.
State Street Corporation Price
State Street Corporation price | State Street Corporation Quote
STT currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Banks Taking Similar Steps
Earlier this month, FS Bancorp, Inc. (FSBW - Free Report) announced a quarterly dividend hike and an additional share repurchase program. The company declared a dividend of 27 cents per share, reflecting a 3.8% increase from the prior payout. The dividend will be paid out on Aug 21, 2024, to shareholders of record as of Aug 7.
Notably, the company has been paying quarterly cash dividends for 46 quarters. Currently, FSBW’s payout ratio is 22% of its earnings.
Similarly, The PNC Financial Services Group, Inc. (PNC - Free Report) announced a hike in its quarterly common stock dividend. The company declared a quarterly cash dividend of $1.60 per share, marking an increase of 3% from the prior quarter. This dividend will be paid on Aug 5 to shareholders of record as of Jul 15, 2024.
Before the recent hike, PNC raised its dividend by 3.3% to $1.55 per share in July 2023. Also, the company has a five-year annualized dividend growth of 8.84%. At present, its payout ratio is 46% of earnings.