1. State Street Shares of State Street of Boston closed at $40.92 Tuesday, returning 1.5% year-to-date, following a 4% return during 2011.
Based on an 18-cent quarterly payout, the shares are currently yielding 1.72%. Usdin estimates that State Street will earn $3.90 cents a share during 2012, and raise its quarterly dividend to 24 cents, for dividend payout ratio of 25% and an estimated dividend yield of 2.4%. The analyst expects State Street to repurchase 21 million shares during 2012, for $1.0 billion, for a combined dividend and repurchase payout ratio of 78%. Usdin's price target for State Street is $45.00. The shares trade for 1.6 times tangible book value, and a rather high 15 times the consensus 2012 EPS estimate of $2.93. The consensus 2013 EPS estimate is $3.39. State Street is very strongly capitalized, and estimated that as of Dec. 30, its Basel III Tier 1 common equity ratio was 12.1%. Interested in more on State Street? See TheStreet Ratings' report card for this stock.