Bank of New York Mellon Corp (BK) Announces Dividend Increase – $0.28 Per Share
Bank of New York Mellon Corp (NYSE:BK) announced a quarterly dividend on Thursday, July 19th, RTT News reports. Investors of record on Tuesday, July 31st will be given a dividend of 0.28 per share by the bank on Friday, August 10th. This represents a $1.12 dividend on an annualized basis and a yield of 2.12%. This is a boost from Bank of New York Mellon’s previous quarterly dividend of $0.24.
Bank of New York Mellon has increased its dividend payment by an average of 9.2% per year over the last three years and has raised its dividend annually for the last 5 consecutive years. Bank of New York Mellon has a dividend payout ratio of 22.6% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Bank of New York Mellon to earn $4.54 per share next year, which means the company should continue to be able to cover its $0.96 annual dividend with an expected future payout ratio of 21.1%.
BK opened at $52.73 on Friday. The company has a market cap of $56.23 billion, a P/E ratio of 14.65, a price-to-earnings-growth ratio of 1.69 and a beta of 1.17. Bank of New York Mellon has a 1 year low of $49.39 and a 1 year high of $58.99. The company has a debt-to-equity ratio of 0.77, a current ratio of 0.71 and a quick ratio of 0.71.
Bank of New York Mellon declared that its board has authorized a share buyback program on Thursday, June 28th that authorizes the company to repurchase $2.40 billion in shares. This repurchase authorization authorizes the bank to reacquire up to 4.4% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s leadership believes its shares are undervalued.
In other news, insider Kurtis R. Kurimsky sold 4,701 shares of the stock in a transaction that occurred on Friday, May 11th. The stock was sold at an average price of $57.44, for a total transaction of $270,025.44. Following the completion of the transaction, the insider now directly owns 16,487 shares in the company, valued at approximately $947,013.28. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Mitchell E. Harris sold 48,000 shares of the stock in a transaction that occurred on Monday, April 23rd. The shares were sold at an average price of $56.00, for a total value of $2,688,000.00. Following the transaction, the insider now owns 166,810 shares of the company’s stock, valued at $9,341,360. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 67,701 shares of company stock valued at $3,796,375. Company insiders own 1.76% of the company’s stock.
A number of equities analysts have weighed in on the company. Zacks Investment Research upgraded Bank of New York Mellon from a “hold” rating to a “buy” rating and set a $65.00 price target for the company in a report on Tuesday, May 22nd. Morgan Stanley upped their price target on Bank of New York Mellon from $66.00 to $68.00 and gave the stock an “overweight” rating in a report on Friday, April 20th. Credit Suisse Group upped their price target on Bank of New York Mellon from $57.00 to $58.00 and gave the stock a “neutral” rating in a report on Friday, April 20th. ValuEngine upgraded Bank of New York Mellon from a “hold” rating to a “buy” rating in a report on Thursday, April 19th. Finally, Raymond James cut Bank of New York Mellon from an “outperform” rating to a “market perform” rating in a report on Thursday, July 12th. One investment analyst has rated the stock with a sell rating, thirteen have given a hold rating and five have given a buy rating to the stock. The company has a consensus rating of “Hold” and an average target price of $58.41.
About Bank of New York Mellon
The Bank of New York Mellon Corporation provides a range of financial products and services to institutions, corporations, and high net worth individuals in the United States and internationally. The company operates through two segments, Investment Management and Investment Services. It offers investment management, custody, foreign exchange, fund broker-dealer, collateral and liquidity, clearing, corporate trust, global payment, trade finance, and cash management services, as well as securities finance and depositary receipts.
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