Yes, BlackRock generally pays a good dividend, characterized by a robust history of increasing its dividend per share over the long term. While recent dividend growth has moderated, the multi-year trends indicate a strong commitment to returning value to shareholders through growing payouts.
Understanding BlackRock's Dividend Performance
To assess whether BlackRock's dividend is "good," it's helpful to look at its historical growth. The percentages provided below represent the average annual growth rate of BlackRock's dividend payments per share over various periods. Strong and consistent dividend growth is a key indicator of a healthy, reliable dividend.
Here's a breakdown of BlackRock's average annual dividend growth rates:
| Period | Average Annual Dividend Growth Rate |
|---|---|
| Past 12 Months | 2.11% |
| Past 36 Months (3 Years) | 8.21% |
| Past 60 Months (5 Years) | 9.27% |
| Past 120 Months (10 Years) | 10.51% |
As the table illustrates, BlackRock has demonstrated significant long-term dividend growth, with its dividend per share increasing by an average of over 10% annually over the past decade. This consistent growth profile is often a hallmark of a desirable dividend stock. While the most recent 12-month period shows a slower growth rate, the longer-term trends highlight a strong record.
What Makes a Dividend "Good"?
A "good" dividend typically possesses several characteristics that make it attractive to investors. These often include:
- Consistent Growth: A history of regularly increasing dividend payments, as seen with BlackRock's long-term performance. This indicates a healthy and growing business.
- Sustainability: The company's earnings and cash flow should be sufficient to cover its dividend payments, ensuring the dividend can continue and grow without jeopardizing the company's financial health.
- Competitive Yield: While growth is important, a respectable dividend yield (the annual dividend payment divided by the stock price) is also desirable. Investors often compare a company's yield to its industry peers or the broader market.
- Financial Stability: Companies that pay good dividends are usually financially stable, with strong balance sheets and consistent profitability, allowing them to fund payouts even during economic downturns. BlackRock, as a leading global asset manager, generally fits this profile.
BlackRock's Position as a Dividend Payer
BlackRock (BLK) is the world's largest asset manager, with a diversified business model that generates substantial recurring revenue. This strong financial foundation supports its ability to pay and grow dividends. For investors seeking income and long-term capital appreciation, BlackRock's history of dividend growth can make it an appealing option.
Investors often look for companies with a "dividend aristocrat" or "dividend king" status, signifying many years of consecutive dividend increases. While BlackRock may not yet fit these specific categories, its track record of average annual growth rates, particularly over the 5 and 10-year periods, demonstrates a commitment to rewarding shareholders.
