Bank of New York Mellon (NYSE:BK) announced a $0.13 quarterly dividend, up 44% from the previous dividend of $0.09 per share.
The dividend represents an annual yield of 1.8% based on a share price of $28.90, and is payable May 10th to shareholders of record on April 29, 2011.
In addition, BNY Mellon's board of directors has approved an increase to its share buyback program that brings the total common shares allowable for repurchase to 47 million, representing 4% of common outstanding shares.
The action was done in anticipation of the bank's plans to repurchase up to $1.3 billion worth of common stock in 2011.
Robert P. Kelly, Chairman and CEO of BNY Mellon, said, "Following last week's notification by the Fed on our capital plan, the board agreed today that our first capital priority will be to reward our shareholders by increasing the dividend and resuming our share repurchase program. Even with these actions, we expect to exceed the Tier I common Basel III requirement by the end of this year. Our strong balance sheet and significant capital generation should continue to provide us with the flexibility to pursue the opportunities for growth that our business model affords, as well as return capital to our shareholders."
