BlackRock Inc (BLK): What You Have To Know Before Buying For The Upcoming Dividend
Investors who want to cash in on BlackRock Inc’s (NYSE:BLK) upcoming dividend of $2.5 per share have only 3 days left to buy the shares before its ex-dividend date, 01 December 2017, in time for dividends payable on the 21 December 2017. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into BLK’s latest financial data to analyse its dividend attributes. Check out our latest analysis for BlackRock
Here’s how I find good dividend stocks
When researching a dividend stock, I always follow the following screening criteria:
Is its annual yield among the top 25% of dividend-paying companies?
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
Has dividend per share risen in the past couple of years?
Is its earnings sufficient to payout dividend at the current rate?
Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
Does BlackRock pass our checks?
The company currently pays out 45.29% of its earnings as a dividend, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect BLK’s payout to remain around the same level at 42.18% of its earnings, which leads to a dividend yield of 2.26%. Furthermore, EPS should increase to $24.34. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. In the case of BLK it has increased its DPS from $2.68 to $10 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock. Relative to peers, BlackRock produces a yield of 2.08%, which is high for capital markets stocks but still below the low risk savings rate.
What this means for you:
Are you a shareholder?
Are you a shareholder? Investors of BlackRock can continue to expect strong dividends from the stock moving forward. With its favorable dividend characteristics, BLK is one worth keeping around in your income portfolio. However, depending on your portfolio composition, it may be worth exploring other dividend stocks to increase diversification, or even look at high-growth stocks to complement your steady income stocks. I suggest continuing your research by taking a look at my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? With these dividend metrics in mind, I definitely rank BlackRock as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. As always, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. No matter how much of a cash cow BlackRock is, it is not worth an infinite price. Can you still benefit from a mispricing of the stock? Dig deeper in our latest free analysis to find out!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
