Summary
The Bank of New York Mellon Corporation (BK) announced on June 27, 2019, significant capital return initiatives to shareholders. The Board of Directors approved a new share repurchase program authorizing up to $3.94 billion of common stock repurchases, set to commence in the third quarter of 2019 and extend through the second quarter of 2020. This new plan supersedes all prior authorizations and can be executed through various methods including open market purchases and accelerated share repurchases. In addition to share buybacks, the company intends to increase its quarterly cash dividend on common stock. The dividend is projected to rise from $0.28 to $0.31 per share, effective as early as the third quarter of 2019, pending final Board approval. These actions signal a strong commitment by BK to enhance shareholder value through both capital reduction and increased income distribution.
Key Highlights
- 1Approved a new share repurchase program of up to $3.94 billion.
- 2Repurchase program to run from Q3 2019 through Q2 2020.
- 3Share repurchases can be executed through various methods, including open market and accelerated transactions.
- 4New repurchase plan replaces all previously authorized plans.
- 5Intends to increase quarterly cash dividend from $0.28 to $0.31 per share.
- 6Dividend increase expected to commence as early as Q3 2019.
- 7Announcements signal a significant capital return to shareholders.