Is State Street’s New MyIncome ETFs and Dividends Altering The Investment Case For State Street (STT)?

• In February 2026, State Street Investment Management launched five actively managed State Street MyIncome target-maturity high-yield corporate bond ETFs maturing between 2027 and 2031, while State Street Corporation declared cash dividends on its common and multiple preferred stock series payable in March and April 2026.
• This combination of new income-focused ETFs and ongoing preferred and common dividends highlights State Street’s effort to broaden fee-based products while continuing cash returns to shareholders.
• We’ll now examine how the new target-maturity high-yield MyIncome ETFs could influence State Street’s existing investment narrative and fee outlook.

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State Street Investment Narrative Recap

To own State Street, you generally need to believe in steady fee-based growth from custody, ETFs, and investment services, supported by disciplined capital returns. The launch of the MyIncome high-yield target-maturity ETFs modestly reinforces the fee story in the near term, while the more immediate swing factor remains the pace of fee growth versus ongoing fee compression. The biggest near-term risk continues to be pricing pressure across passive and ETF products, which can weigh on margins even if assets keep growing.

The reaffirmed common dividend of US$0.84 per share, alongside preferred dividends, matters here because it underlines management’s commitment to ongoing cash returns at the same time it is rolling out new income-focused ETFs. For investors watching catalysts, this pairing ties the growth of fee-generating products to a continuing dividend stream, but it does not materially change the key risk that rising competition and lower fees could still pressure earnings power.

Yet investors should be aware that intense fee compression across ETFs and servicing could still hurt State Street more than many expect if…

Read the full narrative on State Street (it’s free!)

State Street’s narrative projects $14.7 billion revenue and $3.5 billion earnings by 2028.

Uncover how State Street’s forecasts yield a $144.30 fair value, a 12% upside to its current price.

Exploring Other Perspectives

While the consensus view focuses on steady fee growth, the more optimistic analysts were already assuming State Street could reach about US$14.7 billion in revenue and US$3.0 billion in earnings, so this new ETF launch may either support that stronger fee narrative or prompt a rethink if it fails to gain traction.

Explore 4 other fair value estimates on State Street – why the stock might be worth 42% less than the current price!

Reach Your Own Conclusion

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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