Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, July 5, 2019

Article Excerpt

STATE STREET CORP., $56.80, New York symbol STT, sells accounting and administrative services to large investors such as mutual funds and pension plans. It also offers banking services. State Street has passed the U.S. Federal Reserve’s latest stress test. It measures how financial firms would cope with a jump in unemployment, falling stock prices and other unfavourable developments. As a result, the company plans to raise its quarterly dividend by 10.6% with the 2019 third quarter payment. Investors will then receive $0.52 a share instead of $0.47. The new annual rate of $2.08 yields 3.7%. State Street also plans to repurchase up to $2.0 billion of its shares by June 30, 2020. That’s equal to 10% of its current market cap of $21.0 billion (the total value of all outstanding shares). Share buybacks raise earnings per share and other per-share calculations. That gives the remaining investors a larger stake in the company. OUR RECOMMENDATION: State Street is a buy. State Street recent coverage: May 2019…