8 Reasons To Pick Up This 5.5% Dividend Payer

| About: The Blackstone (BX)
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The environment for M&A and private equity has significantly improved over the past six months. One stock that should benefit from this development and offers a large yield to boot is Blackstone (NYSE:BX).

8 reasons Blackstone is a solid Buy at just over $15 a share:

  • The stock offers a generous 5.5% yield and given current earnings projections dividend payouts should be increasing steadily in the coming years.
  • Analysts have Blackstone ramping up revenues significantly. Estimates are for 30% plus growth in FY2012 and just under 20% revenue increases in FY2013.
  • The stock is showing increasing technical strength and just crossed over its 200 day moving average (See Chart)

(Click to enlarge)

  • The consensus price target for the 19 analysts that cover Blackstone is $19 a share.
  • Earnings growth is projected to grow rapidly. Blackstone made $1.25 per share in FY2011, is projected to make $1.74 in FY2011 and analysts have it earning $2.12 in FY2012.
  • Consensus earnings estimates for FY2012 and FY2013 have increased over the last month.
  • There has been no insider selling in the stock over the last six months.
  • The stock is cheap at just 7.5 forward earnings and low projected five year PEG (.47).

Disclosure: I am long BX.