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State Street (STT) Hikes Dividend by 11% to Cheer Investors

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State Street (STT - Free Report) has increased its regular quarterly dividend. The company announced a dividend of 52 cents per share, representing 11% hike from the prior payout. The dividend will be paid out on Oct 15 to shareholders on record as of Oct 1.

Based on this, State Street’s dividend yield is 3.4%, considering last day’s closing price of $61.10. This is part of the company’s 2019 capital plan, which was approved by the Federal Reserve in June. Also, the bank’s capital plan includes authorization to repurchase $2 billion worth of shares, through the second quarter of 2020.

Since 2011, State Street has been raising dividend annually. From paying 1 cent a share as quarterly dividend following the 2008 financial crisis, the company has come a long way in enhancing shareholder value. Prior to this hike, it had raised dividend by 12% to 47 cents per share in September 2018.

State Street’s strong balance sheet position is expected to continue supporting robust capital deployments. This will also enhance shareholder value.

Amid a challenging operating backdrop, State Street is expected to witness muted revenue growth. While the company is undertaking measures to control costs, overall expenses are expected to remain elevated in the quarters ahead.

Shares of this Zacks Rank #3 (Hold) company have lost 31.2% in the past year compared with the industry’s decline of 4.8%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.



Other than State Street, several major global banks, including JPMorgan (JPM - Free Report) , Bank of America (BAC - Free Report) and PNC Financial (PNC - Free Report) have increased quarterly dividends (as part of their 2019 capital plan) in the range of 13-21%.

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