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State Street Lifts Dividend Following Fed Stress Test Success

State Street plans a 10% hike to its quarterly dividend, raising the payout to 92 cents per share from 84 cents. This decision follows the firm's successful performance in the Federal Reserve's annual stress test, which evaluated the ability of major financial institutions to withstand severe economic volatility.

State Street Lifts Dividend Following Fed Stress Test Success

The proposed dividend, which equates to an annual payout of $3.68, reflects a 2.2% yield based on the stock's closing price of $168.87 on Wednesday. While the board must still grant final approval, the company signaled its intent to return more capital to investors immediately following the regulatory assessment.

Chief Executive Officer Ron O'Hanley attributed the increase to the firm's operational resilience. He stated that the strength of the business allows State Street to maintain client support through shifting market conditions while simultaneously delivering value to shareholders.

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