Bank of New York Announces Share Buyback Program; Board Considers Dividend Increase (BK)
Financial services company, The Bank of New York Mellon Corporation (BK) reported on Thursday that its board has approved $1.35 billion in share buybacks.
The company’s board has authorized a buyback program of up to $1.35 billion in common stock. The buybacks will begin in the second quarter and continue through the first quarter of 2014.
BK also said that its board is now considering a 15% increase in dividends, which would be paid in the second quarter. The board will decide on the dividend increase at its April meeting.
CEO and chairman, Gerald Hassell noted, “our board’s action, along with the Federal Reserve’s notice that it does not object to our capital plan, provides the opportunity to continue to return capital to shareholders.”
Bank of New York Mellon shares were mostly flat during premarket trading Friday. The stock has increased 29% in the past year.
The Bottom Line
Shares of The Bank of New York Mellon Corporation (BK) have a 1.79% yield, based on Thursday’s closing price of $28.99.
The Bank of New York Mellon Corporation (BK) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.
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