May 29, 2025 a 07:46 am
BK: Dividend Analysis - The Bank of New York Mellon Corporation
The Bank of New York Mellon Corporation presents a reliable dividend profile with a solid history of payouts. With its stable dividend yield and extensive history, it is an appealing option for income-focused investors. However, potential investors should consider the moderate growth rates when evaluating long-term total returns.
📊 Overview
The Bank of New York Mellon Corporation operates in the financial sector, enjoying a significant dividend yield of 2.54%. With a current dividend per share of 2.08 USD and an impressive dividend history spanning 41 years without any recent cuts or suspensions, it marks a stable and trustworthy choice for investors.
| Metric | 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
A 41-year history without dividend cuts underscores the company's commitment to consistent payouts, crucial for investor confidence. Maintaining or increasing dividends for foreseeable years also highlights resilience against economic downturns.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.94 |
| 2024 | 1.78 |
| 2023 | 1.58 |
| 2022 | 1.42 |
| 2021 | 1.30 |
📈 Dividend Growth
Despite notable growth figures, the company exhibits modest yet steady dividend growth over the past three and five-year periods. Such stable increments can offer reassurance of future increases to shareholders.
| 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
The payout ratios offer insights into sustainability. With an EPS-based payout of 31.68% and a Free Cash Flow (FCF)-based payout of 64.9%, the company displays balanced allocation. A lower EPS ratio suggests the company retains enough earnings for growth while maintaining decent dividends.
| Key figure | Ratio |
|---|---|
| EPS-based | 31.68% |
| Free cash flow-based | 64.9% |
💵 Cashflow & Capital Efficiency
This section reviews key measures of financial health and efficiency, crucial for evaluating long-term viability and dividend sustenance.
| 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 varied Free Cash Flow Yield highlights the company's operational cash efficiency, while the earnings yield indicates strong profitability. However, the volatility in CAPEX investment may affect future cash positions.
💰 Balance Sheet & Leverage Analysis
Assessing the balance sheet stability helps determine leverage and liquidity risks that may influence company dividends and growth potential.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 1.10 | 1.13 | 1.06 |
| Debt-to-Assets | 0.11 | 0.11 | 0.11 |
| Debt-to-Capital | 0.52 | 0.53 | 0.51 |
| Net Debt to EBITDA | -7.65 | -13.53 | -12.93 |
| Current Ratio | 0.65 | - | - |
| Quick Ratio | 0.65 | 0.78 | 0.74 |
| Financial Leverage | 10.07 | 10.05 | 9.96 |
While leverage ratios remain consistently manageable, the financial leverage of over 10 indicates a high reliance on debt for financing, requiring close monitoring.
🤑 Fundamental Strength & Profitability
Understanding profitability and capital return efficiency enables investors to gauge a company's growth potential and revenue robustness.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 10.96% | 8.06% | 6.32% |
| Return on Assets | 1.09% | 0.80% | 0.63% |
| Net Profit 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 | - | - | - |
| R&D to Revenue | 0% | 0% | 0% |
The improvements in ROE and ROI ratios indicate an enhanced ability to generate profits from equity and invested capital, positioning the company attractively for investors targeting capital appreciation and income.
📉 Price Development
🔍 Dividend Scoring System
| Criterion | Score | |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 3 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Overall Score: 31/40
🏆 Rating
Considering all evaluated parameters, The Bank of New York Mellon Corporation stands out as a strong candidate for investors seeking a stable income stream through dividends. With robust historical performance and a commitment to maintaining dividends, it can appeal to conservative investors focusing on income and capital preservation. The company demonstrates moderate growth which should be considered when forecasting long-term returns.