Bank of New York (BK) Announces 12% Dividend Hike, $2.14B Common Stock Buyback Plan Amid CCAR Results

BNY Mellon (NYSE: BK) announced that the Federal Reserve did not object to the 2016 capital plan in its Comprehensive Capital Analysis and Review. As a result, the company's board of directors has approved the repurchase of up to $2.14 billion of its common stock over a four-quarter period (compared to last year's five-quarter period) starting in the third quarter of 2016 and continuing through the second quarter of 2017. The board also approved the repurchase of up to an additional approximately $560 million of common stock during a portion of the period covered by the repurchase plan, contingent upon the company issuing $750 million of preferred stock. The 2016 capital plan also includes an approximately 12 percent increase to BNY Mellon's quarterly cash dividend on common stock from $0.17 to $0.19 per share, commencing as early as the third quarter of 2016, subject to board approval.

"We are pleased to announce our intention to increase our dividend as early as the third quarter and to continue our share buyback program. We plan to accomplish this while increasing our capital base to meet higher regulatory requirements and to continue to perform through stressed market scenarios," said Gerald L. Hassell, chairman and chief executive officer of BNY Mellon.

You May Also Be Interested In

• Ball Corporation (BALL) Raises Dividend, Enters 40M Share Buyback, Announces Management Changes
• Masonite (DOOR) Shareholders Approve Transaction with Owens Corning (OC)
• First Financial Bancorp (FFBC) Declares $0.23 Quarterly Dividend; 4.1% Yield