KeyCorp (KEY) said Tuesday that its Board of Directors has authorized a common stock repurchase program of up to $344 million and will evaluate an increase in the company's quarterly common stock dividend at its regular meeting in May.
The actions were part of the company's capital plan that was submitted to the Federal Reserve as part of the Comprehensive Capital Analysis and Review. The Federal Reserve has notified Key that it has no objections to the capital actions described in the plan.
The company anticipates completing the common stock repurchases by March 31, 2013. The reacquired shares will be held as treasury shares and may be reissued for various corporate purposes.
Key's capital plan, which was approved by its Board of Directors prior to submission, also requested authority to increase its quarterly common stock dividend from $0.03 per share up to $0.05 per share, effective in the second quarter of 2012. Key's Board of Directors will consider the potential dividend increase at its regular May meeting.
In addition, Key's capital plan included the authority to continue to evaluate the redemption of certain trust preferred capital securities.
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