Northern Trust announced plans to raise its quarterly common dividend 10% from 80 cents to 88 cents per share following the Federal Reserve's 2026 stress test results, subject to board approval. The stress test confirmed the company remains well-capitalized under a severely adverse scenario, providing flexibility to return excess capital to shareholders. The company also reiterated it will continue repurchasing shares opportunistically under an existing 25-million share program with no expiration date, of which 1.64 million shares remained available as of March 31, 2026. As of that date, Northern Trust held $41.7 billion in Federal Reserve and other central bank deposits against total debt of $10.7 billion, underscoring a strong liquidity position. The dividend increase follows a 6.7% hike last year and reflects a payout ratio of 33%.
Northern Trust CorporationNorthern Trust plans a 10% dividend hike and continues share buybacks after passing Fed stress test, signaling strong capital position.
Morgan Stanley
JPMorgan Chase & Co