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All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
BlackRock Finance in Focus
Based in New York, BlackRock Finance (BLK - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 17.71%. The investment firm is paying out a dividend of $5.1 per share at the moment, with a dividend yield of 2.13% compared to the Financial - Investment Management industry's yield of 2.85% and the S&P 500's yield of 1.51%.
Taking a look at the company's dividend growth, its current annualized dividend of $20.40 is up 2% from last year. In the past five-year period, BlackRock Finance has increased its dividend 5 times on a year-over-year basis for an average annual increase of 9.85%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. BlackRock Finance's current payout ratio is 50%. This means it paid out 50% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for BLK for this fiscal year. The Zacks Consensus Estimate for 2024 is $41.83 per share, which represents a year-over-year growth rate of 10.75%.
Bottom Line
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, BLK is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).
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Are You Looking for a High-Growth Dividend Stock?
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
BlackRock Finance in Focus
Based in New York, BlackRock Finance (BLK - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 17.71%. The investment firm is paying out a dividend of $5.1 per share at the moment, with a dividend yield of 2.13% compared to the Financial - Investment Management industry's yield of 2.85% and the S&P 500's yield of 1.51%.
Taking a look at the company's dividend growth, its current annualized dividend of $20.40 is up 2% from last year. In the past five-year period, BlackRock Finance has increased its dividend 5 times on a year-over-year basis for an average annual increase of 9.85%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. BlackRock Finance's current payout ratio is 50%. This means it paid out 50% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for BLK for this fiscal year. The Zacks Consensus Estimate for 2024 is $41.83 per share, which represents a year-over-year growth rate of 10.75%.
Bottom Line
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, BLK is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).