State Street (STT) to Raise Dividend to $0.52/Share, $2B Stock buyback Following CCAR

State Street Corporation (NYSE: STT) today announced that the Federal Reserve did not object to the Company's capital plan, reviewed as part of the 2019 Comprehensive Capital Analysis and Review (CCAR) process. The capital plan includes a proposed common stock dividend increase and a new common stock purchase program.

“We are pleased with today’s CCAR results. The balance sheet repositioning work that we undertook last year, coupled with our strong capital position, has enabled us to deliver on our priority to significantly increase capital return to our shareholders,” said President and CEO Ron O’Hanley.

State Street’s capital plan proposes an increase to the quarterly common stock dividend to $0.52 per share, from $0.47 per share, beginning in the third quarter of 2019. State Street’s Board of Directors will consider this increase in common stock dividend at its regularly scheduled board meeting in September 2019. Additionally, State Street’s Board has approved a new common stock purchase program, authorizing the purchase of up to $2.0 billion of its common stock that was included in the capital plan. The program will be effective July 1, 2019 and extend through June 30, 2020.

State Street’s third quarter 2019 common stock and other stock dividends, including the declaration, timing and amount, remain subject to consideration and approval by State Street’s Board of Directors at the relevant times. State Street may commence purchases of its common stock under the new authorization beginning July 1, 2019. Stock purchases may be made using various types of transactions, including open-market purchases, accelerated share repurchases or other transactions off the market, and may be made under Rule 10b5-1 trading programs. The timing of stock purchases, type of transaction and number of shares purchased will depend on several factors, including market conditions and State Street’s capital position, its financial performance, the amount of common stock issued as part of employee compensation programs and investment opportunities. The common stock purchase program does not have specific price targets and may be suspended at any time.

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