Following the Federal Reserve’s approval of its Capital Deployment Plan submitted under the 2013 Comprehensive Capital Analysis and Review (CCAR) or the stress test, The Bank of New York Mellon Corporation (BK - Free Report) announced a 15% hike in its quarterly cash dividend on Apr 9, 2013.
With this, the quarterly dividend of BNY Mellon has increased to 15 cents per share. The new dividend will be paid on May 7 to stockholders of record as of Apr 29. Earlier, in 2011, BNY Mellon had hiked its dividend by 44.4% to 13 cents per share.
Along with the recent dividend hike, BNY Mellon has declared a dividend on its preferred stock for the quarter ending Jun 2013. The company declared a dividend of $1,022.22 per share on its Series A Non cumulative Perpetual Preferred Stock and $1,300 per share on the Series C Non cumulative Perpetual Preferred Stock. Both the dividends are payable on Jun 20, 2013 to shareholders of record as of Jun 5, 2013.
Under its new capital plan, BNY Mellon has authorized a $1.35 million share repurchase program. The repurchase activity will begin in the second quarter of 2013 and will continue through the first quarter of 2014.
Similar to BNY Mellon, other firms that have recently hiked dividend following the approval of their capital plans include Fifth Third Bancorp (FITB - Free Report) , Wells Fargo & Company (WFC - Free Report) and State Street Corporation (STT - Free Report) . Fifth Third hiked its dividend by 10% to 11 cents per share, Wells Fargo increased its quarterly common stock dividend by 14% to 25 cents per share and State Street hiked its quarterly cash dividend by 8.3% to 26 cents per share.
BNY Mellon currently carries a Zacks Rank #3 (Hold).