June 03, 2025 a 11:31 am
BK: Dividend Analysis - The Bank of New York Mellon Corporation
The Bank of New York Mellon Corporation has demonstrated consistent dividend performance with 41 years of uninterrupted growth, which is a testament to its robust business model and financial stability. The current dividend yield of 2.54% aligns well with industry standards while the payout ratio of 31.68% indicates room for future growth. This makes BK a strong candidate for income-focused investors seeking stability with some potential for capital appreciation.
📊 Overview
In the financial industry, maintaining a solid dividend track record is crucial. BK has been consistent, boasting a low-to-moderate yield with a potential for growth due to low payout ratios.
| Attribute | Details |
|---|---|
| Sector | Finance |
| Dividend Yield | 2.54% |
| Current Dividend per Share | 2.08 USD |
| Dividend History | 41 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
The historical consistency in dividend payments for BK underscores its commitment to returning value to shareholders, with no cuts in recent years, fostering investor confidence.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.94 |
| 2024 | 1.78 |
| 2023 | 1.58 |
| 2022 | 1.42 |
| 2021 | 1.30 |
📈 Dividend Growth
Evaluating dividend growth helps understand future payout potential. BK's growth trajectory reveals steady increases, strengthening its long-term appeal.
| 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 are crucial in assessing dividend sustainability. BK maintains a conservative approach, suggesting ample opportunity for future increases.
| Key Figure | Ratio |
|---|---|
| EPS-based | 31.68% |
| Free Cash Flow-based | 64.90% |
The EPS-based payout ratio at 31.68% reflects a safety margin that accommodates market volatility. Meanwhile, the FCF-based ratio of 64.90% indicates good cash flow coverage, though slightly higher.
📈 Cashflow & Capital Efficiency
An analysis of cash flows and capital efficiency highlights a company's ability to sustain and grow dividends. BK exhibits healthy financials and strong capital efficiency ratios.
| Year | 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 | 2.14% | 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% |
Overall, BK demonstrates sound cash flow management, reflected in positive earnings yields and moderate capital investment levels.
📉 Balance Sheet & Leverage Analysis
Understanding leverage is critical for assessing financial stability. At BK, debt levels are manageable, maintaining strong financial security amidst market fluctuations.
| Year | 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 | -7.65 | -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 |
BK maintains a competitive position with strong debt ratios that underline its capacity to handle financial obligations efficiently.
📊 Fundamental Strength & Profitability
Profit margins and returns are indicative of a company's efficiency and overall health. Metrics show BK as a reliable contender in the industry.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 10.96% | 8.06% | 6.32% |
| Return on Assets | 1.09% | 0.80% | 0.63% |
| Margins: Net | 24.81% | 19.00% | 16.05% |
| Margins: EBIT | 30.58% | 23.64% | 20.76% |
| Margins: EBITDA | 40.46% | 33.75% | 30.96% |
| Margins: Gross | 100.00% | 100.00% | 100.00% |
| Research & Development to Revenue | 0% | 0% | 0% |
BK's consistent profit margins enhance its earnings resilience, backed by stable returns on assets and equity, aiding investor confidence.
📊 Price Development
⚖️ Dividend Scoring System
| Criteria | Rating (1-5) | Score |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 5 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 35/40
🏆 Rating
The Bank of New York Mellon Corporation exhibits a solid dividend profile with strong historical stability, commendable growth rates, and a conservative payout strategy. Despite moderate growth rates, its financial stability and market positioning make it an attractive holding for income-focused portfolios.