State Street dividend – State Street: A Steady Anchor Despite Downgrade, With Dividend Growth and Capital Strength

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State Street ($NYSE:STT) Corporation, commonly known as State Street, is a financial services company based in Boston, Massachusetts. Despite recently receiving a downgrade in ratings, the company remains a steady anchor in the financial services industry due to its dividend growth and capital strength. State Street has been providing quality financial services for over two centuries. With a long history of generating strong returns and delivering innovative solutions, State Street has been an industry leader for many years. The company’s dividend growth and capital strength have been instrumental in maintaining its position as a stable and reliable partner for customers. State Street recently received a downgrade in ratings from Moody’s, which lowered its outlook from “stable” to “negative”.

This downgrade was due to the company’s exposure to the volatile global markets and its potential impact on earnings. State Street’s dividend growth has been impressive over the years. The company has increased its dividends every year for the past twenty years, making it a reliable source of income for investors. Furthermore, State Street has continued to invest in its capital base, providing a strong foundation for continued growth. With an impressive history of dividend growth and a strong capital base, investors can feel confident that State Street will continue to provide strong returns in the long-term.

Dividends – State Street dividend

The company has issued an annual dividend per share of 2.58 USD, 2.4 USD and 2.18 USD during the last 3 years. Dividend yields from 2021 to 2023 are estimated to be 3.32%, 3.13% and 2.62% respectively. The average dividend yield of State Street is expected to be 3.02%.

This means that if you are looking for a steady dividend paying stock, State Street is a good option for you. Moreover, the company has strong capital and is expected to continue to grow its dividend in the coming years.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for State Street. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for State Street. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for State Street. More…

Key Ratios Snapshot

Some of the financial key ratios for State Street are shown below. More…

Price History

On Friday, STATE STREET opened at $77.4 and closed at $77.2, up by 0.2% from its previous closing price of $77.0. The company has demonstrated a consistent track record of increasing dividends annually, which is a strong indicator of financial stability. In addition, STATE STREET has shown resilience in the face of economic downturns, maintaining a healthy balance sheet and strong cash reserves that protect the company from major losses. These impressive fundamentals have enabled STATE STREET to remain a reliable and profitable investment option for investors. Live Quote…

Analysis

At GoodWhale, we analyzed the fundamentals of STATE STREET, and our Star Chart shows that the company has an intermediate health score of 6/10 with regard to its cashflows and debt. We believe that this suggests that STATE STREET may be able to sustain future operations in times of crisis. Furthermore, based on our analysis, we have classified STATE STREET as a ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividends. Investors who are looking for stable and reliable dividends may be interested in investing in such a company. Although STATE STREET is strong in dividend, its weaknesses lie in asset, growth, and profitability. Nevertheless, we believe that its intermediate health score may still make it an attractive investment opportunity for long-term investors who are looking for reliable dividends. More…

Peers

State Street Corporation is one of the largest financial services companies in the world, and it faces strong competition from several well-established competitors such as DWS Group GmbH & Co KGaA, CI Financial Corp, and Bank of New York Mellon Corp. All of these companies are fiercely competitive in the financial services industry, and offer a wide range of products and services to their customers. Despite the fierce competition, State Street Corporation remains a leader in the industry, offering innovative solutions and superior customer service.

– DWS Group GmbH & Co KGaA ($BER:DWS)

DWS Group GmbH & Co KGaA is a global asset management company with headquarters in Frankfurt, Germany. It provides a comprehensive range of services to both institutional and private investors. As of 2022, the company has a market capitalization of 6.26 billion euros. This is an indication of the size and financial strength of the company. The company also boasts an impressive return on equity of 8.89%. This indicates that the company has been successful in utilizing its resources and generating profits for its shareholders. DWS Group is committed to delivering innovative and sustainable investment solutions to its clients, always striving for excellence.

– CI Financial Corp ($TSX:CIX)

CI Financial Corp is a Canadian wealth management company providing financial services to investors and advisors. The company has a market capitalization of 2.48B in 2022, which indicates the overall size and value of the company. Additionally, its Return on Equity (ROE) of 28.09% indicates the company’s ability to generate profits from its shareholders’ investments. CI Financial Corp is committed to providing innovative and customized wealth solutions to its clients and advisors, as well as delivering superior returns to its shareholders.

– Bank of New York Mellon Corp ($NYSE:BK)

The Bank of New York Mellon Corp is a financial services company that provides services such as custody, asset management and securities lending for institutions, corporations and individuals. As of 2022, it has a market cap of 36.14B and a Return on Equity of 5.74%. The market cap indicates the total value of its outstanding shares and is a major indicator of its financial health. The Return on Equity ratio is a measure of the company’s ability to generate profits from its shareholders’ investments. This ratio is an important indicator of the company’s profitability and efficiency. Overall, the Bank of New York Mellon Corp is a solid financial services company with a strong market cap and ROE.

Summary

State Street Corporation is an American multinational financial services holding company that provides investment management, securities processing, and other financial services to institutional investors worldwide. The company has seen a ratings downgrade in recent months due to concerns over its dividend growth and capital strength. Despite this, many investors are still looking to State Street as an attractive investment opportunity due to its long history of providing a steady dividend and its position as a major global player in the financial services industry. Analysts believe that State Street’s ability to navigate the current market dynamics and remain financially strong will be a key factor in determining its future success.