Summary
State Street Corporation (STT) announced on June 27, 2019, that it received no objection from the Federal Reserve regarding its capital plan, as evaluated through the 2019 Comprehensive Capital Analysis and Review (CCAR) process. This positive regulatory outcome allows the company to proceed with its proposed capital distribution initiatives. The approved capital plan includes a proposed increase in the quarterly common stock dividend and a new share repurchase program, signaling confidence in the company's financial stability and commitment to returning capital to shareholders. Specifically, the capital plan proposes raising the quarterly dividend from $0.47 to $0.52 per share, effective in the third quarter of 2019, subject to board approval in September. Additionally, State Street has authorized a new common stock purchase program, allowing for up to $2.0 billion in buybacks between July 1, 2019, and June 30, 2020. These actions are generally viewed favorably by investors as they suggest robust capital levels and management's strategy to enhance shareholder value.
Key Highlights
- 1Federal Reserve did not object to State Street's 2019 CCAR capital plan.
- 2Proposed increase in quarterly common stock dividend to $0.52 per share from $0.47 per share.
- 3Dividend increase subject to Board of Directors' consideration and approval in September 2019.
- 4Approved a new common stock purchase program authorizing up to $2.0 billion in buybacks.
- 5Share repurchase program effective from July 1, 2019, through June 30, 2020.
- 6Share repurchases may be executed through various methods including open-market purchases and accelerated share repurchases.
- 7The announcement signals a positive regulatory assessment and commitment to shareholder capital return.