July 28, 2025 a 03:31 pm
BK: Dividend Analysis - The Bank of New York Mellon Corporation
The Bank of New York Mellon Corporation demonstrates a solid dividend profile with a consistent history of payments. Despite a moderate yield, the company showcases a robust growth pattern over the years, highlighting a stable financial framework conducive to sustained investor returns. Numerous financial metrics underline the company's fiscal discipline, which bodes well for future dividend continuation.
📊 Overview
This section provides an at-a-glance view of key dividend attributes.
| Metric | Value |
|---|---|
| Sector | Financials |
| Dividend Yield | 1.92% |
| Current Dividend per Share | 2.08 USD |
| Dividend History | 41 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
With over four decades of consistent dividends, The Bank of New York Mellon Corporation offers investors a reliable income stream, reflecting financial stability and management's commitment to shareholder value.
| Year | Dividend Per Share |
|---|---|
| 2025 | 1.47 USD |
| 2024 | 1.78 USD |
| 2023 | 1.58 USD |
| 2022 | 1.42 USD |
| 2021 | 1.30 USD |
📈 Dividend Growth
Signifying the company's sustained growth capabilities, the dividend growth rates offer insights into its future payout potential.
| 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 ratio offers critical insight into the sustainability of dividend distributions relative to earnings and free cash flow.
| Key Figure | Ratio |
|---|---|
| EPS-based | 31.68% |
| Free Cash Flow-based | 63.98% |
With a payout ratio of 31.68% based on EPS and 63.98% based on free cash flow, the company maintains a conservative dividend policy, ensuring ample room for future growth and stability.
📈 Cashflow & Capital Efficiency
An in-depth analysis of cash flow matrices illustrates the company's ability to generate and efficiently manage its financial resources.
| 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 | 213.83% | 20.64% | 8.93% |
| Stock-based Compensation to Revenue | 0% | 0% | 2.21% |
| Free Cash Flow / Operating Cash Flow Ratio | -113.83% | 79.36% | 91.07% |
The negative free cash flow to operating cash flow ratio in 2024 signals potential cash flow constraints, although prior years show healthier metrics, indicating adaptability.
📉 Balance Sheet & Leverage Analysis
Evaluating leverage ratios helps determine the company's capacity to manage debt and use leverage effectively without compromising financial integrity.
| 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 | -7.38 | -13.53 | -12.20 |
| Current Ratio | 0.65 | 0.78 | 0.74 |
| Quick Ratio | 0.65 | 0.78 | 0.74 |
| Financial Leverage | 10.07 | 10.05 | 9.96 |
Despite an elevated financial leverage ratio, the consistent quick and current ratios signal the company's capability to meet short-term obligations effectively.
📉 Fundamental Strength & Profitability
Examining profitability ratios is crucial to assess operational efficiency and the ability to drive shareholder returns.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 10.96% | 8.06% | 6.32% |
| Return on Assets | 1.09% | 0.80% | 0.63% |
| Margins: Net | 11.45% | 9.72% | 15.60% |
| EBIT | 14.79% | 12.10% | 21.10% |
| EBITDA | 19.34% | 17.27% | 31.89% |
| Gross | 46.16% | 51.18% | 97.23% |
| R&D to Revenue | 0% | 0% | 0% |
Robust gross margins and improving return on equity suggest strengthening operational efficiency and profitability.
📉 Price Development
✅ Dividend Scoring System
The company's dividend capability is evaluated quantitatively across crucial performance metrics.
| Criteria | Score | |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Total Score: 32/40
✅ Rating
In conclusion, The Bank of New York Mellon Corporation presents a well-rounded dividend investment opportunity. Considering its financial resilience, growth potential, and solid historical dividend record, investors looking for a stable income component with moderate growth may find this company an attractive addition to their portfolios.