2024-02-08 19:16:08 ET
Summary
- Bank of New York Mellon gets a slight downgrade to hold, contrary to the overly bullish consensus on SA, and more cautious than the prior buy rating.
- BNY is a 200+ year, leading global custodian and clearing bank with a wealth advisory shop and other segments, so is well diversified with both fee income and interest income.
- It is a proven dividend grower, but the current high share price drives the dividend yield below some key peers.
- Share price approaching 10-year highs soon, causing us to use caution given the volatile banking segment lately and the risk of regional banks to the overall sector.
Intro
With recent media headlines focused on headwinds in a few regional banks , we wanted to pivot in today's article back to a major global bank to look at the financials sector again from another angle, and that of investing in what could be called the largest custodian bank in the world.
The Bank of New York Mellon Corporation ( BK ) is a company we have written about 3 times already, is one of our favorites to cover, and who has since released its latest earnings on January 12th.
Prior Rating Recap
So far, in 2023 we were bullish on BNY and the price growth shows we called it accurately. Since our May buy rating , it is up +37%. In August we said strong buy and it is up +21% since then, and our follow-up in December called for a buy and it is up +11% since then. ...
Read the full article on Seeking Alpha
For further details see:
Bank of New York Mellon: A Dividend Grower With $2 Trillion AUM, But Getting Expensive