May 02, 2025 a 03:31 am
BK: Dividend Analysis - The Bank of New York Mellon Corporation
The Bank of New York Mellon Corporation, with a significant market capitalization, showcases a robust dividend history, making it a stable choice for income-seeking investors. Offering a current dividend yield of approximately 2.54%, it maintains a steady payout with minimal interruptions over the past 41 years. Its payout ratios indicate room for dividend growth and resilience against economic volatility.
📊 Overview
The Bank operates within the financial sector, known for consistent dividend payments. Below is an overview of its key dividend metrics:
| Detail | Value |
|---|---|
| Sector | Financial |
| Dividend Yield | 2.54% |
| Current Dividend Per Share | $2.08 USD |
| Dividend History | 41 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
BNY Mellon's consistent dividend history reflects its commitment to returning value to shareholders. A track record like this often implies financial stability and positive forward guidance.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | $0.94 |
| 2024 | $1.78 |
| 2023 | $1.58 |
| 2022 | $1.42 |
| 2021 | $1.30 |
📈 Dividend Growth
The growth of dividends is a crucial indicator of a company's ability to enhance payouts to its investors.
| Time | Growth |
|---|---|
| 3 years | 11.04% |
| 5 years | 8.57% |
The average dividend growth is 8.57% over 5 years. This shows moderate but steady dividend growth.
📉 Payout Ratio
Payout ratios express the proportion of earnings paid to shareholders in dividends, which is paramount in assessing dividend sustainability.
| Key Figure | Ratio |
|---|---|
| EPS-based | 31.68% |
| Free cash flow-based | -189.98% |
The EPS-based payout ratio of 31.68% signals ample coverage by profits, while the negative free cash flow-based ratio highlights potential cash flow constraints that could impact future dividends if not resolved.
💰 Cashflow & Capital Efficiency
Effective cash flow management and capital efficiency are vital for sustaining business operations and shareholder value.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | -1.37% | 11.50% | 37.17% |
| Earnings Yield | 7.94% | 8.05% | 6.97% |
| CAPEX to Operating Cash Flow | 213.83% | 20.64% | 8.93% |
| Stock-based Compensation to Revenue | 0 | 0 | 2.28% |
| Free Cash Flow / Operating Cash Flow Ratio | -113.83% | 79.36% | 91.07% |
The cash metrics reflect fluctuations, underscoring the need for strategic cash flow management to enhance stability and investor returns.
📜 Balance Sheet & Leverage Analysis
A robust balance sheet underpins long-term financial health, ensuring the company can meet obligations while pursuing growth opportunities.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 1.10 | 1.13 | 1.06 |
| Debt-to-Assets | 10.92% | 11.28% | 10.64% |
| Debt-to-Capital | 52.38% | 53.14% | 51.46% |
| Net Debt to EBITDA | 9.78 | -13.53 | -12.93 |
| Current Ratio | 0.65 | 0.78 | 0.74 |
| Quick Ratio | 0.65 | 0.78 | 0.74 |
| Financial Leverage | 10.07 | 10.05 | 9.96 |
The leverage ratios indicate a moderate but manageable leverage position, suggesting a well-structured debt framework supporting operational agility.
💡 Fundamental Strength & Profitability
Profitability metrics encapsulate how effectively a company utilizes its assets to generate earnings, reflecting overall financial competence.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 11.96% | 8.06% | 6.32% |
| Return on Assets | 1.09% | 0.80% | 0.63% |
| Net Margin | 24.81% | 19.00% | 16.05% |
| EBIT Margin | 30.58% | 23.64% | 20.76% |
| EBITDA Margin | 40.46% | 33.75% | 30.96% |
| Gross Margin | 100% | 100% | 100% |
The margins demonstrate strong profitability potential, vital for sustaining competitive dividend payouts and funding future growth initiatives.
📈 Price Development
✅ Dividend Scoring System
This scoring system evaluates essential dividend attributes to guide investment decisions.
| Criteria | Score | Visual Score |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 4 | |
| Dividend Growth | 3 | |
| Payout Ratio | 4 | |
| Financial Stability | 3 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 2 | |
| Balance Sheet Quality | 3 |
Total Score: 27/40
🔍 Rating
The Bank of New York Mellon Corporation exhibits a strong dividend profile and financial stability. It is suited for conservative investors who value steady income over aggressive growth. With a high dividend continuity score and robust payout ratio discipline, BNY Mellon remains a reliable dividend-paying entity in the financial sector.