State Street To Boost Dividend, Buy Back Up To $1.8 Bln Of Stock

(RTTNews) - State Street Corp. (STT) said Wednesday that the Federal Reserve did not object to the company's capital plan, which includes a proposed common stock dividend increase and a new common stock purchase program.

Under the capital plan, State Street plans to increase its quarterly common stock dividend to $0.34 per share, from $0.30 per share, beginning in the second quarter of 2015. The common stock dividend for the second quarter of 2015 is to be considered by State Street's Board of Directors at its regularly scheduled meeting in May.

Additionally, State Street said that its Board has approved a new common stock purchase program authorizing the purchase of up to $1.8 billion of its common stock. The program will be effective April 1, 2015 and extend through June 30, 2016.

Capital distributions under State Street's capital plan include common stock repurchases and dividends on State Street's common and preferred stock. Unlike the four-quarter capital plan submitted in connection with CCAR 2014, the plan submitted for CCAR 2015 covers five quarters (ending June 30, 2016). Total projected average quarterly capital distributions under the CCAR 2015 capital plan are generally comparable to those projected in the CCAR 2014 capital plan in March 2014, when State Street announced that plan's common stock purchase program.

State Street may commence purchases of its common stock under the new authorization beginning April 1.