CLEVELAND, Jan. 18 /PRNewswire-FirstCall/ -- The Board of Directors of KeyCorp increased the quarterly cash dividend to $0.365 from $0.345 per common share, marking the 42nd consecutive year of dividend increases. On an annualized basis, the increase would raise Key's dividend to $1.46. The dividend is payable March 15, 2007, to shareholders of record on Feb. 27, 2007.
The Board of Directors also authorized the repurchase of up to 30 million shares of KeyCorp common stock, including 5.0 million shares remaining under the prior authorization. The shares will be acquired either in the open market or in privately negotiated transactions.
"These actions reflect the Board's confidence in the financial strength and future direction of our company," said Henry L. Meyer III, Chairman and Chief Executive Officer. "Increasing the company dividend every year for more than four decades is a track record that very few companies can claim."
Standard & Poor's has named KeyCorp one its "Dividend Aristocrats" -- one of 59 U.S. companies that have raised its dividend for 25 or more consecutive years.
The Board of Directors also set May 10 as the date for the company's 2007 Annual Meeting of Shareholders. The meeting will begin at 8:30 a.m., local time, at the Forum Conference Center, 1375 East Ninth Street, Cleveland, Ohio.
Cleveland-based KeyCorp is one of the nation's largest bank-based financial services companies, with assets of approximately $92 billion. Key companies provide investment management, retail and commercial banking, consumer finance, and investment banking products and services to individuals and companies throughout the United States and, for certain businesses, internationally.
This news release contains forward-looking statements, including statements about our financial condition, results of operations, earnings outlook, asset quality trends and profitability. Forward-looking statements express management's current expectations or forecasts of future events and, by their nature, are subject to assumptions, risks and uncertainties. Although management believes that the expectations and forecasts reflected in these forward-looking statements are reasonable, actual results could differ materially due to a variety of factors including: (1) changes in interest rates; (2) changes in trade, monetary or fiscal policy; (3) changes in general economic conditions, or in the condition of the local economies or industries in which we have significant operations or assets, which could, among other things, materially impact credit quality trends and our ability to generate loans; (4) increased competitive pressure among financial services companies; (5) the inability to successfully execute strategic initiatives designed to grow revenues and/or manage expenses; (6) consummation of significant business combinations or divestitures; (7) operational or risk management failures due to technological or other factors; (8) heightened regulatory practices, requirements or expectations; (9) new legal obligations or liabilities or unfavorable resolution of litigation; (10) adverse capital markets conditions; (11) disruption in the economy and general business climate as a result of terrorist activities or military actions; and (12) changes in accounting or tax practices or requirements. Forward-looking statements are not guarantees of future performance and should not be relied upon as representing management's views as of any subsequent date. We do not assume any obligation to update these forward-looking statements. For further information regarding KeyCorp, please read KeyCorp's reports that are filed with the Securities and Exchange Commission and are available at http://www.sec.gov/.
