BNY Mellon Announces Intention To Increase Quarterly Common Stock Dividend From $0.37 To $0.42 Per Share
Portfolio Pulse from Happy Mohamed
BNY Mellon (NYSE:BK) plans to increase its quarterly cash dividend on its common shares by 14% from $0.37 to $0.42 per share, starting from the third quarter of 2023, subject to board approval. The Federal Reserve's 2023 bank stress test results showed BNY Mellon's resilience and strong capital position. The company's Stress Capital Buffer (SCB) requirement will remain at 2.5%, equal to the regulatory floor, effective from October 1, 2023, to September 30, 2024. BNY Mellon continues to be authorized to repurchase common shares under its existing share repurchase program.
June 30, 2023 | 8:39 pm
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POSITIVE IMPACT
BNY Mellon's planned dividend increase and strong results from the Federal Reserve's 2023 bank stress test could positively impact its stock. The company's ongoing share repurchase program could also provide support to the stock.
Dividend increases are generally seen as a sign of a company's strong financial health and can attract income-focused investors, potentially driving the stock price up. The positive results from the Federal Reserve's stress test further demonstrate BNY Mellon's financial strength. The ongoing share repurchase program could also provide support to the stock by reducing the number of shares outstanding, thereby increasing earnings per share.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100