State Street (STT) Hikes Quarterly Cash Dividend by 10.1%

Core Viewpoint - State Street Corp. (STT) has increased its quarterly cash dividend by 10.1% to 76 cents per share, reflecting the company's financial strength and commitment to returning value to shareholders [1] Dividend Increase - The new dividend will be paid on October 11 to shareholders of record as of October 1 [1] - This increase follows a previous hike of 9.5% to 69 cents per share in July 2023, marking the fifth dividend increase in the last five years with an annualized growth rate of 7.56% [1] Financial Metrics - STT's current payout ratio stands at 35% of earnings, indicating a balance between returning capital to shareholders and retaining earnings for growth [2] - With a closing price of $84.49 on July 19, the dividend yield is currently 3.6$5 billion, with approximately $4.7 billion remaining as of June 30, 2024 [2] - A previous buyback plan of$4.5 billion expired on December 31, 2023 [2] Liquidity Position - As of June 30, 2024, STT reported total debt of $38.7 billion against cash and equivalents of$91.6 billion, showcasing a strong liquidity position [3] - This robust capital and liquidity position supports the company's ability to sustain capital distribution activities and enhance shareholder value [3] Stock Performance - Over the past year, STT shares have appreciated by 23% [3] - The company currently holds a Zacks Rank 2 (Buy), indicating positive market sentiment [3] Industry Trends - Other banks, such as FS Bancorp and PNC Financial Services, have also announced dividend hikes and share repurchase programs, reflecting a broader trend in the banking sector [4][5] - FS Bancorp declared a 3.8% increase in its quarterly dividend, while PNC raised its dividend by 3% [4][5]