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BlackRock Increases Its Quarterly Dividend to $4.13

Asset manager BlackRock (NYSE: BLK) increased its quarterly dividend on Thursday to $4.13 per share.

That's an increase of 14% from $3.63 per share last quarter. The dividends will be paid out on March 23. On an annual basis, BlackRock will pay $16.52 per share to investors, one of the highest payouts in the financial sector.

Image source: Getty Images.

The dividend yield, which is the percentage of the share price that goes to the annual dividend, is about 2.2%. The payout ratio, which is the percentage of earnings that go to the dividend, is about 39%.

This is the 12th straight year of dividend increases for BlackRock, which is the largest asset management firm in the United States with $8.6 trillion in assets under management (AUM).

BlackRock is coming off a strong 2020 when the stock price increased 47.2%. It saw AUM climb 17% in 2020 to $8.6 trillion. The company generated $16.2 billion in revenue for the year, an 11% increase year over year, and $4.9 billion in net income, a 10% increase. Most of the revenue came from investment advisor fees, which were up 7% to $12.6 billion.

The firm reported $391 billion in net inflows for the full year. Almost half of that total went into its iShares exchange-traded funds, which had $185 billion in net inflows. The full-year EPS was $33.82, up 19%.

In the fourth quarter, revenue climbed 13% year over year to $4.5 billion, while net income rose 19% to $1.5 billion, or $10.02 per share. ETFs had $78 billion in net inflows in the quarter, about 61% of the $127 billion total.

The stock price is up about 3% year to date. The high dividend and solid yield of this market leader make BlackRock an attractive stock.

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Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.


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