BNY Mellon's (BK) Dividend Growth Strategy and its Status as a Best Performing Stock in 2025

The Bank of New York Mellon Corporation (NYSE:BK) is included among the 15 Best Performing Dividend Stocks So Far in 2025.

The Bank of New York Mellon Corporation (NYSE:BK) is an American bank holding company. It has a history of more than 240 years and has built a reputation for delivering innovative financial solutions that serve businesses, communities, and individuals worldwide.

During its recent earnings call, management emphasized its disciplined and forward-thinking approach, marked by steady growth, strategic clarity, and a preference for organic expansion over large-scale mergers and acquisitions. This shift underscores The Bank of New York Mellon Corporation (NYSE:BK)’s focus on internal transformation and strengthening its own capabilities.

Examples of this strategy include moving roughly half of its workforce onto a platform-based model, the widespread integration of its Eliza AI tool, and active participation in stablecoin infrastructure, positioning The Bank of New York Mellon Corporation (NYSE:BK) as a credible player in digital assets. Alongside these initiatives, management has maintained tight expense discipline, achieving 500 basis points of positive operating leverage. The company also sustained a strong 92% payout ratio, balancing margin improvements with continued investment in growth.

On July 15, The Bank of New York Mellon Corporation (NYSE:BK) declared a 13% hike in its quarterly dividend to $0.53 per share. Through this increase, the company stretched its dividend growth streak to 15 years. The stock has a dividend yield of 1.99%, as of September 15.

While we acknowledge the potential of BK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.