Yahoo Finance BNY Mellon Rewards Shareholders With More Share Buybacks
The Bank of New York Mellon Corporation BK is on track to reward shareholders with impressive capital deployment plans. In sync with this and following the Federal Reserve’s approval, the company announced an additional share repurchase program of up to $830 million.
BNY Mellon intends to make these repurchases either in open market or through privately negotiated transactions by Jun 30, 2019. The plan comes in addition to the $2.4 billion of authorized buyback capacity that the company had announced under its 2018 capital plan. As of Sep 30, 2018, nearly $1.8 billion worth of share repurchase authorization remained.
In June, the capital plans of the company along with other firms like JPMorgan JPM, Bank of America BAC, Morgan Stanley MS and Citigroup were approved by the Fed, following the successful clearance of the annual stress test. (Read more: Fed Gives a Thumbs Up to Capital Plans of 34 Banks)
BNY Mellon’s 2018 capital plan also included a 17% dividend hike, which was announced in July 2018. Prior to this, the company had increased its dividend in July 2017 as part of its that year’s capital plan.
Driven by a healthy liquidity position, BNY Mellon remains well poised to increase shareholders’ wealth through regular dividend payments and share buybacks. Further, the company’s capital deployment activities look sustainable, given the lower debt/equity ratio compared with its peers and robust earnings strength.
Shares of BNY Mellon have lost 11.4% so far this year compared with the industry’s decline of 12.6%.
Currently, BNY Mellon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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