We recently published a list of the 10 dividend shares with sustainable payment ratios. In this article we will see where the Bank of New York Mellon Corporation (NYSE: BK) stands against other best dividend shares with sustainable payment ratios.
Dividend-paying shares have remained popular with investors because of their strong historical performance. This persistent interest has led to many companies retaining, increasing their dividend payments or introducing a new dividend policy.
According to data from S&P Dow Jones Indices, American domestic orders saw a net dividend increase of $ 15.3 billion in the first quarter of 2025, which is an improvement compared to the increase of $ 11.7 billion that was seen in the previous quarter. During the 12 months ending in March 2025, dividend rises amounted to $ 68.2 billion, just above $ 68.1 billion reported the year before. In the meantime, dividend reductions fell considerably, a total of $ 15.6 billion, compared to $ 25.2 billion in the previous period of 12 months.
The same report noted that the total dividend payments have risen by approximately 6%to 7%, although this was slightly lower than the expectation before 2025 of 8%. For comparison, dividend expenses rose by 6.4% in 2024 and 5.1% in 2023.
Additional data from S&P Dow Jones Indices showed that 758 companies have increased or initiated dividend payments in Q1 2025, which is a slight decrease of 796 in the same period last year, as a result of a decrease of 4.8% on an annual basis. Nevertheless, the total value of these increases was $ 19.5 billion for the quarter. During the 12 -month period in March 2025, a total of 2,412 companies raised their dividend payments and marked a slight increase in 2,411 companies that did this in the same period last year. The total value of these dividend increases reached $ 68.2 billion, just beyond $ 68.1 billion registered during the previous section of 12 months.
Howard Silverblatt, a senior index analyst at S&P Dow Jones Indices, issued a continued optimism about the general prospects for dividends. However, he also acknowledged some uncertainty, given the current market conditions. He made the following comment about the situation.
“Dividend growth is usually the strongest in Q1, because most companies close their financial year and prepare for their shareholders meeting. For Q1 2025, the growth, although noticeably slower, continued and was in line with expectations considering the current economic uncertainties. However, this uncertainty did not seem to stop with increase in pre -wart.”
Despite some caution, analysts remain positive about dividend shares, indicate that American companies are well positioned to support their payouts thanks to strong cash reserves. Nuveen, a financial planning company based in Illinois, noted that an increasing number of companies will probably roll out the dividend policy, supported by the current cash -rich environment, which could cause a stronger than expected dividend growth in 2025.
The report stated that on 30 September 2024 the business ownership of companies was $ 1.8 trillion, which was close to their highest level in the last 20 years. With share valuations that are performed above the historical standards, Nuveen believes that companies can lean more on stimulating dividend payments as a way to give back value to shareholders, rather than trusting share purchasing, which may be less attractive in a landscape with a higher value.
Analysts generally consider a payment ratio in the reach of 30% to 50% as optimal because it indicates that a company returns a healthy part of its income to the shareholders while retaining sufficient profit to invest again in his company and support future growth.
The Bank of New York Mellon Corporation (BK): Under the dividend shares with sustainable payment ratios
An aerial photo of a modern skyscraper that emphasizes the company’s business services and the company’s treasury.
For this article we screened for companies that consistently distribute dividends among their shareholders. From this first selection we have limited the list with only those companies with an average paying ratio of 5 years below 50%, which indicates a robust cash position. We then identified the top 10 companies that meet these criteria and have arranged them in rising order of the number of hedge funds that held interests in each of them, according to the database of Insider Monkey in Q4 2024.
At Insider Monkey we are obsessed with hedge funds. Why are we interested in the shares that stack hedge funds? The reason is simple: our research has shown that we can surpass the market by imitating the best share choices of the best hedge funds. The strategy of our quarterly newsletter selects 14 CAP and Large-CAP shares every quarter and has returned 373.4% since May 2014 and has reported its benchmark with 218 percentage points (See more details here).
Average payment ratio of 5 years: 35.77%
The Bank of New York Mellon Corporation (NYSE: BK) is an American financial services, with head office in New York. The company reported solid income in the first quarter of 2025. The turnover came to $ 4.8 billion, which showed a growth of 6% from the same period last year. The company reported average deposits of $ 283 billion, which reflects an increase of 1% compared to the previous year and a fall of 1% compared to the previous quarter. In addition, the lever ratio of Tier 1 was in 6.2%, which was a 35-based annual basis and an increase of 50 basic points compared to the previous quarter.
The Bank of New York Mellon Corporation (NYSE: BK) was founded in 2007 by the merger of the Bank of New York and Mellon Financial Corporation, and it became the world’s largest storage bench. In contrast to traditional banks that offer services, such as accepting deposits and publishing loans, BNY Mellon specializes in providing security services to assets owners, including other financial institutions. In the past 12 months, the share has risen by more than 40%.
The Bank of New York Mellon Corporation (NYSE: BK) is a solid dividend payer and has always remained dedicated to return value for shareholders. In the most recent quarter, the company divided $ 1.1 billion to shareholders, including $ 343 million in dividends. Currently, the dividend is $ 0.47 per share for a dividend yield of 2.46%, from 17 April. The company has increased its dividend payments 14 years in a row.
Generally BK is in 7th place On our list of the best dividend shares with sustainable payment ratios. Although we recognize the potential of BK as an investment, our conviction is that some deeply undervalued dividend shares have a greater promise to deliver a higher return, and to do this within a shorter time frame. If you are looking for a deeply undervalued dividend share that is more promising than BK, but that is traded with 10 times its income and his income increases at double digits per year, view our report on the dirt cheap dividend stock.
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Publication: none. This article was originally published on Insider Monkey.
