State Street: 6.8% Preferred Dividend Yield Is Too Good To Ignore

State Street posted robust Q2 results, boosting full-year guidance and reaffirming compelling midterm earnings targets. STT's fee-driven model delivered a 70% YoY EPS increase, supported by a 20%+ AUM surge and strong non-interest income. Management targets a mid-20% ROTCE and projects 2028–2029 EPS of $16.5–$17, implying attractive upside despite a premium valuation. The Series G preferred stock offers a 6.8% yield with low payout risk and potential capital gains if called.

State Street Corporation ( STT ) is a financial institution providing financial services to institutional investors. STT focuses on providing investment servicing, investment management and research to its customer base. A strong Q2 result allowed the bank