Interested In BlackRock Inc (BLK)’s Upcoming $2.5 Dividend? You Have 7 Days Left
Attention dividend hunters! BlackRock Inc (NYSE:BLK) will be distributing its dividend of $2.5 per share in 7 days time, on the 21 December 2017, and will start trading ex-dividend on the 01 December 2017. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine BLK’s latest financial data to analyse its dividend characteristics. View our latest analysis for BlackRock
5 checks you should do on a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
Is their annual yield among the top 25% of dividend payers?
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
Has dividend per share amount increased over the past?
Is is able to pay the current rate of dividends from its earnings?
Will it have the ability to keep paying its dividends going forward?
How well does BlackRock fit our criteria?
The company currently pays out 45.29% of its earnings as a dividend, which means that the dividend is 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 2.27%. Moreover, EPS should increase to $24.34. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. BLK has increased its DPS from $2.68 to $10 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. This is an impressive feat, which makes BLK a true dividend rockstar. In terms of its peers, BlackRock produces a yield of 2.09%, 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 income stocks to enhance your diversification, or even look at high-growth stocks to complement your steady income stocks. I encourage you to continue your research by checking out my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? Keeping in mind the dividend characteristics above, BLK is definitely worth considering for investors looking to build a dedicated income portfolio. As with all investments, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. Whether or not you like BLK as a dividend stock, it’s still worth checking the price tag. Is BlackRock overvalued or is it actually a bargain? Take a look at 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.
