Updated 3/6/25

BlackRock is the world’s largest asset manager, overseeing trillions of dollars across a diverse mix of investment products. Best known for its iShares ETFs, the company also provides wealth management, risk analytics, and advisory services. Since BlackRock’s revenue is largely tied to assets under management (AUM), its financial performance moves with the broader markets.

For dividend-focused investors, BlackRock offers a compelling mix of income, stability, and long-term growth potential. It has a strong history of increasing its dividend, backed by solid earnings and cash flow. Let’s break down the key dividend metrics and what investors should know before adding BlackRock to their portfolio.

Key Dividend Metrics

🔹 Dividend Yield: 2.15%
🔹 Annual Dividend: $20.84 per share
🔹 5-Year Average Yield: 2.41%
🔹 Payout Ratio: 48.56%
🔹 Dividend Growth Streak: 14+ years
🔹 Most Recent Dividend Increase: 2.2%
🔹 Ex-Dividend Date: March 7, 2025
🔹 Dividend Payment Date: March 24, 2025

Dividend Overview

BlackRock’s dividend yield sits at 2.15%, slightly below its five-year average of 2.41%, reflecting strong stock performance. While this isn’t the highest yield available, it’s well-supported by consistent earnings growth.

The company’s current payout ratio of 48.56% indicates that the dividend is sustainable and leaves room for future increases. Since BlackRock’s primary source of revenue comes from investment management fees, its income is fairly predictable, making the dividend less susceptible to sudden cuts.

Dividend Growth and Safety

BlackRock has consistently grown its dividend for over 14 years, a streak that demonstrates its commitment to shareholders. Historically, the company has delivered double-digit percentage increases, but the most recent raise of 2.2% was more modest. This could signal a more conservative approach in the near term.

Over the last five years, BlackRock’s dividend has grown at a compound annual rate of about 11%, well above inflation. Given its payout ratio remains below 50%, there’s still plenty of room for continued dividend growth in the years ahead.

Another key factor in dividend safety is cash flow. BlackRock generated $4.96 billion in operating cash flow over the past year, providing ample support for dividends and share buybacks. The company’s ability to consistently produce strong cash flow adds another layer of confidence for long-term investors.

Chart Analysis

Price Action

BlackRock’s stock has been in a strong uptrend over the past year, but more recently, the momentum has slowed. The price peaked above $1,000 before pulling back, and now it’s hovering near $957.91. The decline has brought the stock below its 50-day moving average, which is often a sign of short-term weakness. However, the 200-day moving average remains intact, suggesting the longer-term uptrend is still in place.

Looking at the latest trading session, the stock opened at 837.99, briefly touched a high of 839.22, and then dropped to a low of 829.63 before closing at 831.70. This kind of price movement indicates some intraday selling pressure, as the stock was unable to hold higher levels.

Moving Averages

The 50-day moving average, represented by the orange line, is now trending downward. This is a potential warning sign that momentum is shifting. In contrast, the 200-day moving average, shown in blue, is still moving higher, which suggests the broader uptrend remains intact. If the stock can reclaim its 50-day moving average and hold above it, it would be a sign that buyers are stepping back in. Otherwise, further downside could be possible if selling pressure continues.

Volume Analysis

Trading volume in the most recent session was 384,701 shares, which is within the normal range. There haven’t been any significant spikes in volume recently, meaning the current price action is happening without major institutional involvement. That being said, looking back at the past few months, there were periods of elevated volume during sharp declines, which suggests some larger players may have been taking profits.

Relative Strength Index (RSI)

The RSI is currently around 64.85, which is in neutral territory but closer to overbought conditions. It had previously been higher when the stock was making new highs, but it has since cooled off. If RSI moves above 70, it would indicate overbought conditions, potentially signaling a pullback. On the flip side, if RSI drops below 50, it could suggest growing bearish momentum.

Candlestick Behavior

The last five candles show some mixed sentiment. There was a bounce attempt after a recent pullback, but the wicks on the tops of the candles suggest selling pressure is still present. Buyers have stepped in around the current level, but they haven’t been able to push the stock decisively higher. If a strong green candle appears with higher volume, it could indicate renewed strength. Otherwise, continued small-bodied candles with long wicks could mean uncertainty in the near term.

Analyst Ratings

BlackRock, Inc. (BLK) has recently received a mix of analyst opinions, reflecting both optimism and caution. The consensus among analysts is a “Moderate Buy” rating, with an average price target of approximately $1,120.67, suggesting a potential upside of around 16.86% from the current price of $959.02.

Recent Upgrades

On January 16, 2025, Morgan Stanley reiterated its positive outlook on BlackRock, adjusting its price target from $1,261 to $1,275. This revision underscores the firm’s confidence in BlackRock’s strategic positioning and growth prospects. Similarly, UBS maintained its neutral rating on January 21, 2025, raising its price target from $1,017 to $1,045, indicating a 2.97% potential upside. These updates highlight a growing optimism among analysts regarding BlackRock’s performance and future trajectory.

Recent Downgrades

Conversely, some analysts have adopted a more cautious stance. On December 12, 2023, Exane BNP Paribas downgraded BlackRock from “Overweight” to “Neutral” and set a price target of $885. This downgrade suggests concerns about potential challenges or headwinds that could impact BlackRock’s performance. Additionally, on December 15, 2023, JP Morgan adjusted its price target for BlackRock from $708 to $708, reflecting a more conservative outlook.

These mixed assessments reflect the dynamic nature of the financial markets and the varying perspectives of analysts on BlackRock’s future performance.

Earnings Report Summary

BlackRock wrapped up 2024 with strong financial results, showing solid growth and strategic moves that are shaping its future. The company continues to dominate the asset management space, and its latest earnings report reflected both resilience and ambition.

Revenue and Earnings Growth

The company pulled in $20.4 billion in revenue for the year, up 14% from the previous year. A big part of this growth came from rising asset values, steady client inflows, and higher performance fees. On the profit side, operating income jumped 21% to reach $8.1 billion, a sign that BlackRock is managing costs well while expanding its business.

Earnings per share (EPS) came in at $42.01 for the year, with an adjusted EPS of $43.61, marking a solid 15% increase from last year. That kind of steady growth is exactly what long-term investors like to see.

Assets Under Management

By the end of 2024, BlackRock’s total assets under management (AUM) had climbed to $11.6 trillion. The company attracted a record-breaking $641 billion in net inflows, with $281 billion coming in during just the fourth quarter. That’s a strong signal that investors continue to trust BlackRock, even in a market filled with uncertainty.

Major Acquisitions and Expansion

BlackRock made some big moves in 2024 to expand its business, especially in private markets and data analytics.

• Global Infrastructure Partners (GIP): This $12.5 billion acquisition gives BlackRock a much bigger foothold in infrastructure investments, making it the second-largest manager in the space.
• HPS Investment Partners: This deal will create a powerful private credit franchise with roughly $220 billion in client assets.
• Preqin: Buying this UK-based financial data platform will strengthen BlackRock’s analytics, especially in the growing private markets sector.

These acquisitions show that BlackRock is doubling down on alternative investments and data-driven services, both of which are becoming increasingly important in asset management.

Returning Value to Shareholders

BlackRock kept rewarding shareholders throughout the year, returning $4.7 billion through dividends and share buybacks. About $1.6 billion of that came from stock repurchases, a sign that management sees value in its own shares.

Leadership and Future Outlook

CEO Larry Fink has now led BlackRock through 100 earnings reports since the company went public in 1999. At 72, speculation continues about who might succeed him, but for now, he shows no signs of stepping away. Several senior executives are seen as potential successors, but Fink’s strong influence on the company means he could remain involved even if he steps down as CEO.

Looking ahead, BlackRock’s strategic expansion into private markets and its strong financial performance suggest continued growth. The company’s ability to bring in new client assets and innovate in investment strategies keeps it positioned as a leader in global finance.

Financial Health and Stability

A solid dividend is only as reliable as the financial foundation behind it. Fortunately, BlackRock maintains a strong balance sheet and healthy profitability.

• Revenue grew 22.6% year-over-year
• Net profit margin stands at 31.21%, indicating efficient operations
• Return on equity (ROE) is 14.38%, reflecting strong shareholder returns
• Debt-to-equity ratio is 28.82%, a manageable level of leverage

The company’s revenue growth has been impressive, with a 22.6% increase year-over-year. Profit margins remain strong at over 31%, showing that BlackRock operates with significant pricing power and efficiency.

While the company carries $14.22 billion in debt, its debt-to-equity ratio of 28.82% is reasonable for a firm of its size. Additionally, BlackRock has $13.09 billion in cash on hand, ensuring financial flexibility to weather market downturns while continuing to reward shareholders.

Valuation and Stock Performance

BlackRock isn’t a cheap stock, but premium dividend payers rarely are.

• Trailing P/E ratio: 23.05
• Forward P/E ratio: 20.45
• Price-to-book ratio: 3.16
• PEG ratio (5-year expected): 1.72

The stock trades at 23 times trailing earnings and 20.45 times forward earnings, which is in line with historical levels. A price-to-book ratio of 3.16 suggests the stock is fairly valued but not deeply discounted.

Stock Performance

• 52-week range: $745.55 – $1,084.22
• Current price: $959.64
• 50-day moving average: $1,001.58
• 200-day moving average: $928.03

After a strong rally, BlackRock is currently trading below its 50-day moving average but remains above its 200-day moving average. This suggests some near-term weakness, but the long-term trend remains positive.

Risks and Considerations

No stock is risk-free, and BlackRock is no exception. Here are a few factors to keep in mind.

📉 Market Sensitivity – Since BlackRock’s revenue is tied to AUM, a broad market downturn could reduce its earnings, potentially slowing dividend growth.

🏛️ Regulatory Pressure – As the world’s largest asset manager, BlackRock faces scrutiny from regulators, which could impact its business model.

📌 Competition – While BlackRock dominates the ETF market, competition from Vanguard, State Street, and others could put pressure on fees and margins.

🛑 Slower Dividend Growth – The recent 2.2% dividend increase was lower than previous years, which may signal a more cautious approach moving forward.

Final Thoughts

For dividend investors, BlackRock remains a strong long-term option, offering a combination of income, growth, and financial stability. While its 2.15% yield isn’t the highest, it’s backed by solid earnings and a history of steady increases.

That said, investors should keep an eye on market conditions and regulatory risks, as BlackRock’s performance is closely tied to the overall health of the financial markets. Even though its latest dividend increase was smaller than past hikes, the company remains in strong financial shape and committed to returning capital to shareholders.

With a history of reliable dividend growth, BlackRock remains an attractive choice for income-focused investors looking for a high-quality stock with global reach.