Based on the $5.73 per share dividend and share prices hovering around $1,065 at the time of writing on September 15, investors will need to purchase 18 BLK shares to earn approximately $100 in dividends this month. At a price of $1,065 per share, such an investment would cost $19,170.
BlackRock’s dividend profile
BlackRock pays a quarterly dividend and has a 17-year track record of dividend increases, according to the data on the asset manager’s official website. Its dividend yield sits at 2.15%, slightly below the industry average of 3.18%.
However, the company’s forward payout ratio stands at 35.56%, suggesting that a relatively modest portion of projected earnings is distributed to shareholders. The stock’s average price recovery period is 5.7 days, indicating that investors have historically recovered from dividend-related price adjustments relatively quickly.
Moreover, there have been no BlackRock stock splits since the company went public. While the absence of stock splits does not affect the dividend paid per share, it is relevant when assessing BlackRock’s long-term share price history and dividend growth.
As BlackRock has increased its dividend on a year-over-year basis for an average annual increase of 7.33% over the past five years, it is very likely the payout will go up next year too.
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