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Bank of New York Mellon

NYSE:BK
Snowflake Description

Established dividend payer and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BK
NYSE
$44B
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

The Bank of New York Mellon Corporation provides a range of financial products and services to institutions, corporations, and high net worth individuals in the United States and internationally. The last earnings update was 15 days ago. More info.


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BK Share Price and Events
7 Day Returns
-0.8%
NYSE:BK
1.3%
US Capital Markets
0.2%
US Market
1 Year Returns
-19.4%
NYSE:BK
-11%
US Capital Markets
2.9%
US Market
BK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Bank of New York Mellon (BK) -0.8% -4.8% -13.3% -19.4% 9.8% 33.5%
US Capital Markets 1.3% -1.7% 1.2% -11% 44.4% 64.9%
US Market 0.2% -1.6% 2.4% 2.9% 36.1% 41%
1 Year Return vs Industry and Market
  • BK underperformed the Capital Markets industry which returned -11% over the past year.
  • BK underperformed the Market in United States of America which returned 2.9% over the past year.
Price Volatility
BK
Industry
5yr Volatility vs Market

BK Value

 Is Bank of New York Mellon undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Bank of New York Mellon to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Bank of New York Mellon.

NYSE:BK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 13 analysts.
= Stable Book Value * Return on Equity
= $42.59 * 10.8%
$4.62
Book Value of Equity per Share Weighted future Book Value estimates from 11 analysts. $42.59
Discount Rate (Cost of Equity) See below 10.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:BK
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.7
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.696 (1 + (1- 21%) (157.08%))
1.375
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.38
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.375 * 5.96%)
10.93%

Discounted Cash Flow Calculation for NYSE:BK using Excess Returns Model Model

The calculations below outline how an intrinsic value for Bank of New York Mellon is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:BK Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (10.8% – 10.93%) * $42.59)
$-0.03
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-0.03 / (10.93% - 2.73%)
$-0.40
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $42.59 + $-0.40
$42.19
NYSE:BK Discount to Share Price
Calculation Result
Value per share (USD) From above. $42.19
Current discount Discount to share price of $46.16
= -1 x ($46.16 - $42.19) / $42.19
-9.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Bank of New York Mellon is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Bank of New York Mellon's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Bank of New York Mellon's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:BK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.89
NYSE:BK Share Price ** NYSE (2019-05-22) in USD $46.16
United States of America Capital Markets Industry PE Ratio Median Figure of 87 Publicly-Listed Capital Markets Companies 32.12x
United States of America Market PE Ratio Median Figure of 3,085 Publicly-Listed Companies 17.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Bank of New York Mellon.

NYSE:BK PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:BK Share Price ÷ EPS (both in USD)

= 46.16 ÷ 3.89

11.87x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bank of New York Mellon is good value based on earnings compared to the US Capital Markets industry average.
  • Bank of New York Mellon is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Bank of New York Mellon's expected growth come at a high price?
Raw Data
NYSE:BK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.87x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
3%per year
United States of America Capital Markets Industry PEG Ratio Median Figure of 33 Publicly-Listed Capital Markets Companies 2.25x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

NYSE:BK PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.87x ÷ 3%

4.02x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bank of New York Mellon is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Bank of New York Mellon's assets?
Raw Data
NYSE:BK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $39.35
NYSE:BK Share Price * NYSE (2019-05-22) in USD $46.16
United States of America Capital Markets Industry PB Ratio Median Figure of 170 Publicly-Listed Capital Markets Companies 7.85x
United States of America Market PB Ratio Median Figure of 5,201 Publicly-Listed Companies 1.84x
NYSE:BK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:BK Share Price ÷ Book Value per Share (both in USD)

= 46.16 ÷ 39.35

1.17x

* Primary Listing of Bank of New York Mellon.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bank of New York Mellon is good value based on assets compared to the US Capital Markets industry average.
X
Value checks
We assess Bank of New York Mellon's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. Bank of New York Mellon has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

BK Future Performance

 How is Bank of New York Mellon expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Bank of New York Mellon expected to grow at an attractive rate?
  • Bank of New York Mellon's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Bank of New York Mellon's earnings growth is positive but not above the United States of America market average.
  • Bank of New York Mellon's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:BK Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:BK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 3%
NYSE:BK Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 1.7%
United States of America Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 7%
United States of America Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 4.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:BK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:BK Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 16,529 4,041 2
2020-12-31 16,302 3,987 13
2019-12-31 15,953 3,834 13
NYSE:BK Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 16,112 5,899 3,848
2018-12-31 16,403 5,996 4,070
2018-09-30 16,130 4,077 4,361
2018-06-30 16,080 8,045 4,268
2018-03-31 15,902 5,039 4,133
2017-12-31 15,567 4,667 3,872
2017-09-30 15,616 8,065 3,563
2017-06-30 15,554 2,948 3,547
2017-03-31 15,376 3,228 3,446
2016-12-31 15,248 6,267 3,373
2016-09-30 15,028 1,699 3,192
2016-06-30 14,857 2,955 3,047

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Bank of New York Mellon's earnings are expected to grow by 3% yearly, however this is not considered high growth (20% yearly).
  • Bank of New York Mellon's revenue is expected to grow by 1.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:BK Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Bank of New York Mellon Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:BK Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 4.66 5.00 4.29 3.00
2020-12-31 4.41 4.65 4.10 19.00
2019-12-31 4.05 4.25 3.92 19.00
NYSE:BK Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.89
2018-12-31 4.06
2018-09-30 4.31
2018-06-30 4.18
2018-03-31 4.02
2017-12-31 3.74
2017-09-30 3.42
2017-06-30 3.39
2017-03-31 3.26
2016-12-31 3.16
2016-09-30 2.97
2016-06-30 2.81

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Bank of New York Mellon is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Bank of New York Mellon's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Bank of New York Mellon has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

BK Past Performance

  How has Bank of New York Mellon performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Bank of New York Mellon's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Bank of New York Mellon's year on year earnings growth rate has been positive over the past 5 years.
  • Bank of New York Mellon's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Bank of New York Mellon's 1-year earnings growth is negative, it can't be compared to the US Capital Markets industry average.
Earnings and Revenue History
Bank of New York Mellon's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Bank of New York Mellon Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:BK Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 16,112.00 3,848.00 9,422.00
2018-12-31 16,403.00 4,070.00 9,399.00
2018-09-30 16,130.00 4,361.00 9,273.00
2018-06-30 16,080.00 4,268.00 9,224.00
2018-03-31 15,902.00 4,133.00 9,173.00
2017-12-31 15,567.00 3,872.00 9,093.00
2017-09-30 15,616.00 3,563.00 8,791.00
2017-06-30 15,554.00 3,547.00 8,747.00
2017-03-31 15,376.00 3,446.00 8,703.00
2016-12-31 15,248.00 3,373.00 8,726.00
2016-09-30 15,028.00 3,192.00 8,723.00
2016-06-30 14,857.00 3,047.00 8,729.00
2016-03-31 14,964.00 3,052.00 8,769.00
2015-12-31 15,034.00 3,010.00 8,841.00
2015-09-30 15,159.00 2,591.00 8,852.00
2015-06-30 16,000.00 2,827.00 8,926.00
2015-03-31 15,865.00 2,554.00 8,953.00
2014-12-31 15,740.00 2,451.00 9,004.00
2014-09-30 15,657.00 2,745.00 9,093.00
2014-06-30 14,808.00 2,640.00 9,098.00
2014-03-31 15,095.00 2,912.00 9,202.00
2013-12-31 15,083.00 2,002.00 9,150.00
2013-09-30 15,156.00 2,112.00 9,049.00
2013-06-30 15,055.00 1,876.00 8,940.00
2013-03-31 14,647.00 1,518.00 8,772.00
2012-12-31 14,690.00 2,389.00 8,706.00
2012-09-30 14,474.00 2,284.00 8,601.00
2012-06-30 14,510.00 2,215.00 8,625.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Bank of New York Mellon has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Bank of New York Mellon used its assets less efficiently than the US Capital Markets industry average last year based on Return on Assets.
  • Unable to establish if Bank of New York Mellon improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Bank of New York Mellon's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Bank of New York Mellon has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

BK Health

 How is Bank of New York Mellon's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Bank of New York Mellon's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Bank of New York Mellon's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Bank of New York Mellon's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Bank of New York Mellon's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Bank of New York Mellon Company Filings, last reported 1 month ago.

NYSE:BK Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 41,469.00 69,427.00 125,484.00
2018-12-31 40,868.00 70,671.00 139,968.00
2018-09-30 41,861.00 62,809.00 130,105.00
2018-06-30 41,746.00 68,705.00 128,969.00
2018-03-31 42,124.00 77,565.00 147,806.00
2017-12-31 41,746.00 73,005.00 142,116.00
2017-09-30 41,104.00 68,974.00 129,090.00
2017-06-30 40,498.00 66,431.00 125,135.00
2017-03-31 39,831.00 64,770.00 112,059.00
2016-12-31 39,580.00 60,594.00 107,246.00
2016-09-30 40,373.00 58,866.00 137,935.00
2016-06-30 39,297.00 60,227.00 140,800.00
2016-03-31 39,285.00 65,040.00 148,581.00
2015-12-31 38,975.00 63,291.00 168,571.00
2015-09-30 39,199.00 58,012.00 144,085.00
2015-06-30 39,424.00 58,485.00 160,820.00
2015-03-31 38,880.00 58,455.00 162,471.00
2014-12-31 38,703.00 60,920.00 162,859.00
2014-09-30 39,598.00 58,768.00 167,656.00
2014-06-30 39,474.00 54,280.00 189,378.00
2014-03-31 38,969.00 53,170.00 165,804.00
2013-12-31 38,510.00 45,978.00 177,775.00
2013-09-30 37,983.00 52,821.00 177,417.00
2013-06-30 36,931.00 53,535.00 159,121.00
2013-03-31 36,674.00 50,871.00 154,217.00
2012-12-31 37,442.00 43,770.00 165,679.00
2012-09-30 37,139.00 54,803.00 145,622.00
2012-06-30 35,385.00 51,283.00 147,591.00
  • Bank of New York Mellon's level of debt (167.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (136.5% vs 167.4% today).
  • Debt is not well covered by operating cash flow (8.5%, less than 20% of total debt).
  • Unable to confirm if the interest payments on Bank of New York Mellon's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Bank of New York Mellon's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Bank of New York Mellon has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

BK Dividends

 What is Bank of New York Mellon's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.43%
Current annual income from Bank of New York Mellon dividends. Estimated to be 2.78% next year.
If you bought $2,000 of Bank of New York Mellon shares you are expected to receive $49 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Bank of New York Mellon's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • Bank of New York Mellon's dividend is below the markets top 25% of dividend payers in United States of America (3.7%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:BK Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
United States of America Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 2.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2005 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:BK Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.43 6.00
2020-12-31 1.33 18.00
2019-12-31 1.18 18.00
NYSE:BK Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-17 1.120 2.335
2019-01-16 1.120 2.150
2018-10-18 1.120 2.337
2018-08-01 1.120 2.164
2018-07-19 1.120 2.102
2018-04-19 0.960 1.726
2018-01-18 0.960 1.759
2017-10-19 0.960 1.794
2017-08-03 0.960 1.818
2017-07-20 0.960 1.796
2017-05-08 0.760 1.545
2017-04-20 0.760 1.608
2017-02-28 0.760 1.607
2017-01-19 0.760 1.660
2016-11-08 0.760 1.601
2016-10-20 0.760 1.755
2016-08-08 0.760 1.881
2016-07-21 0.760 1.927
2016-04-26 0.680 1.698
2016-04-21 0.680 1.662
2016-02-26 0.680 1.821
2016-01-21 0.680 1.959
2015-11-06 0.680 1.656
2015-10-20 0.680 1.609
2015-08-07 0.680 1.684
2015-07-21 0.680 1.546
2015-05-08 0.680 1.582
2015-04-22 0.680 1.591
2014-10-17 0.680 1.728
2014-07-18 0.680 1.755
2014-04-07 0.680 1.938
2013-10-16 0.600 1.816
2013-07-17 0.600 1.946
2013-04-09 0.600 2.075
2012-10-17 0.520 1.985
2012-07-18 0.520 2.314
2012-04-18 0.520 2.418
2012-01-18 0.520 2.321
2011-10-19 0.520 2.601
2011-07-19 0.520 2.529
2011-03-22 0.520 1.886
2011-01-19 0.360 1.175
2010-10-19 0.360 1.274
2010-07-20 0.360 1.410
2010-01-20 0.360 1.259
2009-10-20 0.360 1.307
2009-07-22 0.360 1.260

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Bank of New York Mellon's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).
X
Income/ dividend checks
We assess Bank of New York Mellon's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Bank of New York Mellon afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Bank of New York Mellon has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

BK Management

 What is the CEO of Bank of New York Mellon's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Charlie Scharf
COMPENSATION $9,383,885
AGE 53
TENURE AS CEO 1.8 years
CEO Bio

Mr. Charles W. Scharf, also known as Charlie, has been Chief Executive Officer and Director of The Bank of New York Mellon Corporation since July 17, 2017 and has been its Chairman since January 1, 2018. He is the Chairman at The Bank of New York Mellon and BNY Mellon, National Association since January 1, 2018 and its Chief Executive Officer and President since July 17, 2017. Mr. Scharf served as the Chief Executive Officer of Visa Inc. from October 2012 to December 1, 2016. Before joining Visa, Mr. Scharf served as the Managing Director and Partner of One Equity Partners LLC (OEP Capital Advisors, L.P.) from 2011 to 2012. Mr. Scharf served as the Head of Retail Financial Services at JPMorgan Chase & Co. since May, 2002. He served as the Chief Executive Officer of Retail Financial Services at JPMorgan Chase & Co. from 2004 to June 2011. He served as Regional Director at USA Region of Visa, Inc. from October 2007 to January 27, 2011. Mr. Scharf served as Head of Retail Bank for JPMorgan Chase & Co., since May 2002. He served as the Chief Financial Officer/Executive Vice President of Banc One Corporation from June 12, 2000 to 2002, Chief Executive Officer of Retail Banking from May 2002 to July 2004 and also served as its President of Retail Banking. He served as Chief Financial Officer of Retail Banking of Bank One Corp. from 2000 to 2002. Mr. Scharf served as an Executive Vice President of Bank One Corporation since June 12, 2000. He helped in rebuilding the brand, expand the branch and ATM network and develop senior talent. He served as Chief Financial Officer at Citigroup Global Markets Limited. He served as Chief Financial Officer of the Global Corporate and Investment Bank of Citigroup from 1999 to 2000. Since 1995, Mr. Scharf served as Vice President and Chief Financial Officer of Smith Barney Holdings Inc after serving in a number of senior finance roles at Travelers companies, including Smith Barney, Primerica and Commercial Credit Corporation. He served as Chief Financial Officer of Salomon Smith Barney Inc. from 1997 to 1999 and its predecessor company from 1995 to 1999. He served as the Chief Financial Officer of Smith Barney (now Citigroup Global Markets Holdings Inc.) from 1995 to 1997. He served as Chief Financial Officer of The Travelers Companies, Inc. (formerly, Travelers Property Casualty Corp.). Mr. Scharf also held various financial positions with Travelers from 1987 to 1995. He serves as the Chairman of the New York City Ballet. He has been an Independent Director of Microsoft Corporation since October 1, 2014. He has been a Director of Visa International Service Association since October 2007. He served as a Director of Visa Inc. from October 2012 to December 1, 2016 and previously served as its Director from October 2007 to January 27, 2011. He served as Member of Supervisory Board of SMARTRAC N.V from June 19, 2012 to October 22, 2012. He previously served as a Director of Visa U.S.A. Inc. from October 2007 to January 2011 and again served as its Director since October 2012. He served as a Director of The St. Paul Companies Inc. from September 2002 to September 2005. He served as a Director of The Travelers Companies, Inc. from April 1, 2004 to September 2005. He is a Member of the Financial Services Roundtable and the Economic Club of Chicago as well as a Director of The Lyric Opera and Looking glass Theater. He is on the Board of Trustees for Johns Hopkins University. Mr. Scharf holds a Master of Business Administration degree from New York University and a Bachelor of Arts degree from The John Hopkins University.

CEO Compensation
  • Charlie's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Charlie's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Bank of New York Mellon management team in years:

1.8
Average Tenure
57
Average Age
  • The average tenure for the Bank of New York Mellon management team is less than 2 years, this suggests a new team.
Management Team

Charlie Scharf

TITLE
Chairman & CEO
COMPENSATION
$9M
AGE
53
TENURE
1.8 yrs

Mike Santomassimo

TITLE
Senior EVP & CFO
COMPENSATION
$3M
AGE
43
TENURE
1.3 yrs

O'Connor Engle

TITLE
Senior EVP & Chief Information Officer
COMPENSATION
$6M
AGE
54
TENURE
1.9 yrs

Todd Gibbons

TITLE
Chief Executive Officer of Clearing
COMPENSATION
$7M
AGE
61
TENURE
12.3 yrs

Mitchell Harris

TITLE
Senior EVP & CEO of Investment Management
COMPENSATION
$9M
AGE
63
TENURE
8 yrs

Brian Ruane

TITLE
CEO of BNY Mellon Government Securities Services Corp.
TENURE
1.9 yrs

Lester Owens

TITLE
Senior EVP & Head of Operations
AGE
60
TENURE
0.3 yrs

Sabet Elias

TITLE
Chief Technology Officer
TENURE
0.6 yrs

Magda Palczynska

TITLE
Global Head of Investor Relations
TENURE
0.2 yrs

Mark Musi

TITLE
Chief Compliance & Ethics Officer
Board of Directors Tenure

Average tenure and age of the Bank of New York Mellon board of directors in years:

3.8
Average Tenure
58.5
Average Age
  • The tenure for the Bank of New York Mellon board of directors is about average.
Board of Directors

Charlie Scharf

TITLE
Chairman & CEO
COMPENSATION
$9M
AGE
53
TENURE
1.3 yrs

Sam Scott

TITLE
Independent Director
COMPENSATION
$271K
AGE
74
TENURE
11.8 yrs

Ted Kelly

TITLE
Independent Director
COMPENSATION
$280K
AGE
72
TENURE
11.8 yrs

Jeffrey Goldstein

TITLE
Independent Director
COMPENSATION
$270K
AGE
63
TENURE
5.1 yrs

Ed Garden

TITLE
Independent Director
COMPENSATION
$275K
AGE
57
TENURE
4.4 yrs

Joe Echevarria

TITLE
Lead Director
COMPENSATION
$330K
AGE
61
TENURE
3.1 yrs

John Hinshaw

TITLE
Independent Director
COMPENSATION
$270K
AGE
48
TENURE
4.7 yrs

Liz Robinson

TITLE
Independent Director
COMPENSATION
$375K
AGE
49
TENURE
2.6 yrs

Linda Cook

TITLE
Independent Director
COMPENSATION
$250K
AGE
60
TENURE
2.4 yrs

Jennifer Morgan

TITLE
Independent Director
COMPENSATION
$250K
AGE
47
TENURE
2.4 yrs
Who owns this company?
Recent Insider Trading
  • Bank of New York Mellon insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. May 19 Sell Trian Fund Management, L.P. Company 02. May 19 03. May 19 -621,807 $50.12 $-31,157,377
02. May 19 Sell Jane McCarthy Individual 30. Apr 19 30. Apr 19 -25,000 $49.43 $-1,235,730
13. Mar 19 Sell Trian Fund Management, L.P. Company 11. Mar 19 13. Mar 19 -792,000 $52.28 $-41,262,284
05. Mar 19 Sell Kurtis Kurimsky Individual 01. Mar 19 01. Mar 19 -5,797 $53.00 $-307,258
20. Feb 19 Sell Charles Scharf Individual 15. Feb 19 15. Feb 19 -4,674 $52.99 $-247,675
20. Feb 19 Sell Bridget Engle Individual 15. Feb 19 15. Feb 19 -22,670 $52.99 $-1,201,283
29. Jan 19 Sell Trian Fund Management, L.P. Company 25. Jan 19 28. Jan 19 -2,107,000 $53.64 $-112,681,929
X
Management checks
We assess Bank of New York Mellon's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Bank of New York Mellon has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

BK News

Simply Wall St News

If You Had Bought Bank of New York Mellon (NYSE:BK) Stock Five Years Ago, You Could Pocket A 41% Gain Today

But The Bank of New York Mellon Corporation (NYSE:BK) has fallen short of that second goal, with a share price rise of 41% over five years, which is below the market return. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Over half a decade, Bank of New York Mellon managed to grow its earnings per share at 8.9% a year.

Simply Wall St -

Should You Investigate The Bank of New York Mellon Corporation (NYSE:BK) At US$51.29?

The Bank of New York Mellon Corporation (NYSE:BK). … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Today I will analyse the most recent data on Bank of New York Mellon’s outlook and valuation to see if the opportunity still exists.

Simply Wall St -

How Do Analysts See The Bank of New York Mellon Corporation (NYSE:BK) Performing In The Year Ahead?

Looking at The Bank of New York Mellon Corporation's (NYSE:BK) earnings update on 31 December 2018, … the consensus outlook from analysts appear somewhat bearish, … the higher past 5-year average growth rate of 12%.

Simply Wall St -

How Does The Bank of New York Mellon Corporation (NYSE:BK) Fare As A Dividend Stock?

Historically, The Bank of New York Mellon Corporation (NYSE:BK) has paid a dividend to shareholders. … Let's take a look at Bank of New York Mellon in more detail. … View our latest analysis for Bank of New York Mellon

Simply Wall St -

Is Now The Time To Look At Buying The Bank of New York Mellon Corporation (NYSE:BK)?

Today we're going to take a look at the well-established The Bank of New York Mellon Corporation (NYSE:BK). … A question to answer is whether Bank of New York Mellon's current trading price of $49.15 reflective of the actual value of the? … Let’s take a look at Bank of New York Mellon’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Is The Bank of New York Mellon Corporation (NYSE:BK) Expensive For A Reason? A Look At The Intrinsic Value

One of the most difficult industry to value is capital markets, given that they adhere to different rules compared to other companies. … For instance, these businesses must hold a certain level of cash reserves on the books as a safety precaution.

Simply Wall St -

2 Days Left To Cash In On The Bank of New York Mellon Corporation (NYSE:BK) Dividend, Is It Worth Buying?

On the 10 August 2018, The Bank of New York Mellon Corporation (NYSE:BK) will be paying shareholders an upcoming dividend amount of US$0.28 per share. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Bank of New York Mellon's latest financial data to analyse its dividend attributes. … Does earnings amply cover its dividend payments

Simply Wall St -

Should The Bank of New York Mellon Corporation (NYSE:BK) Be Part Of Your Portfolio?

In the past 10 years The Bank of New York Mellon Corporation (NYSE:BK) has returned an average of 2.00% per year to investors in the form of dividend payouts. … Does Bank of New York Mellon tick all the boxes of a great dividend stock? … Check out our latest analysis for Bank of New York Mellon

Simply Wall St -

Should You Be Concerned About The Bank of New York Mellon Corporation's (NYSE:BK) Earnings Growth?

Today I will assess BK's recent performance announced on 31 March 2018 and compare these figures to its long-term trend and industry movements. … Did BK's recent earnings growth beat the long-term trend and the industry. … BK's trailing twelve-month earnings (from 31 March 2018) of US$4.13b has

Simply Wall St -

Should You Buy The Bank of New York Mellon Corporation (NYSE:BK) At US$54.20?

Today we're going to take a look at the well-established The Bank of New York Mellon Corporation (NYSE:BK). … A question to answer is whether Bank of New York Mellon's current trading price of $54.2 reflective of the actual value of the? … Let’s take a look at Bank of New York Mellon’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

BK Company Info

Description

The Bank of New York Mellon Corporation provides a range of financial products and services to institutions, corporations, and high net worth individuals in the United States and internationally. The company operates through two segments, Investment Management and Investment Services. It offers investment management, custody, foreign exchange, fund broker-dealer, collateral and liquidity, clearing, corporate trust, global payment, trade finance, and cash management services, as well as securities finance and depositary receipts. The company also provides mutual funds, separate accounts, and wealth management and private banking services; and trust and registered investment advisory services. In addition, it engages in leasing, corporate treasury, derivative and other trading, corporate and bank-owned life insurance, renewable energy investment, and business exit activities. The Bank of New York Mellon Corporation was founded in 1784 and is headquartered in New York, New York.

Details
Name: The Bank of New York Mellon Corporation
BK
Exchange: NYSE
Founded: 1784
$44,198,997,090
957,517,268
Website: http://www.bnymellon.com
Address: The Bank of New York Mellon Corporation
240 Greenwich Street,
New York,
New York, 10286,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE BK Common Stock New York Stock Exchange US USD 02. Jan 1969
DB BN9 Common Stock Deutsche Boerse AG DE EUR 02. Jan 1969
LSE 0HLQ Common Stock London Stock Exchange GB USD 02. Jan 1969
BMV BK * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1969
NYSE BK.PRC DP1/4000 PFD-C New York Stock Exchange US USD 14. Sep 2012
BOVESPA BONY34 EACH BDR REPR 1 COM STK USD0.01 Bolsa de Valores de Sao Paulo BR BRL 24. Aug 2015
DB A1HK20 PERP JR D NT4.5% Deutsche Boerse AG DE USD 14. May 2013
Number of employees
Current staff
Staff numbers
49,800
Bank of New York Mellon employees.
Industry
Asset Management and Custody Banks
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 05:14
End of day share price update: 2019/05/22 00:00
Last estimates confirmation: 2019/05/18
Last earnings filing: 2019/05/08
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.