U.S. markets open in 6 hours 28 minutes
  • S&P Futures

    4,610.00
    +43.75 (+0.96%)
     
  • Dow Futures

    34,634.00
    +177.00 (+0.51%)
     
  • Nasdaq Futures

    16,386.00
    +235.50 (+1.46%)
     
  • Russell 2000 Futures

    2,228.10
    +30.80 (+1.40%)
     
  • Crude Oil

    68.33
    +2.15 (+3.25%)
     
  • Gold

    1,786.80
    +10.30 (+0.58%)
     
  • Silver

    22.95
    +0.14 (+0.61%)
     
  • EUR/USD

    1.1356
    +0.0017 (+0.15%)
     
  • 10-Yr Bond

    1.4430
    0.0000 (0.00%)
     
  • Vix

    27.19
    +4.23 (+18.42%)
     
  • GBP/USD

    1.3319
    +0.0018 (+0.13%)
     
  • USD/JPY

    113.3300
    +0.1500 (+0.13%)
     
  • BTC-USD

    57,132.69
    +594.91 (+1.05%)
     
  • CMC Crypto 200

    1,474.11
    +31.33 (+2.17%)
     
  • FTSE 100

    7,059.45
    -50.50 (-0.71%)
     
  • Nikkei 225

    27,935.62
    +113.86 (+0.41%)
     

Blackstone Inc. (NYSE:BX) Looks Like A Good Stock, And It's Going Ex-Dividend Soon

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

It looks like Blackstone Inc. (NYSE:BX) is about to go ex-dividend in the next 3 days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. Meaning, you will need to purchase Blackstone's shares before the 29th of October to receive the dividend, which will be paid on the 8th of November.

The company's upcoming dividend is US$1.09 a share, following on from the last 12 months, when the company distributed a total of US$2.26 per share to shareholders. Based on the last year's worth of payments, Blackstone has a trailing yield of 1.6% on the current stock price of $137.63. If you buy this business for its dividend, you should have an idea of whether Blackstone's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing.

See our latest analysis for Blackstone

Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Fortunately Blackstone's payout ratio is modest, at just 49% of profit.

When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

historic-dividend
historic-dividend

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. It's encouraging to see Blackstone has grown its earnings rapidly, up 31% a year for the past five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Since the start of our data, 10 years ago, Blackstone has lifted its dividend by approximately 19% a year on average. It's great to see earnings per share growing rapidly over several years, and dividends per share growing right along with it.

To Sum It Up

From a dividend perspective, should investors buy or avoid Blackstone? When companies are growing rapidly and retaining a majority of the profits within the business, it's usually a sign that reinvesting earnings creates more value than paying dividends to shareholders. This is one of the most attractive investment combinations under this analysis, as it can create substantial value for investors over the long run. We think this is a pretty attractive combination, and would be interested in investigating Blackstone more closely.

On that note, you'll want to research what risks Blackstone is facing. Every company has risks, and we've spotted 3 warning signs for Blackstone you should know about.

A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.