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BlackRock: A Dividend Contender With 16 Years Of Solid Growing Income

May 04, 2020 9:36 AM ETBlackRock, Inc. (BLK)BA, JNJ9 Comments
William Stamm profile picture
William Stamm


  • BlackRock’s total return over-performed the Dow average for my 52-month test period by 52.55%.
  • BlackRock’s dividend yield is above average at 3% and has been increased for 16 years in a row as a dividend contender with an 11% five-year dividend growth rate.
  • BlackRock’s three-year forward CAGR at 7% is good and gives you growth with the increasing United States economy after the Virus is controlled and the markets get back to normal.
  • Earnings for BlackRock’s last quarter were good with earnings, beating estimate, inline earnings compared to last year, and increasing revenues of 10.88% year over year.

BlackRock (NYSE:BLK), provides a range of investment and risk management services to institutional and retail clients worldwide, is a buy for the dividend growth and total return investor. BlackRock has steady growth and has plenty of cash, which it uses to add new products and increase the dividend each year. Even with an earnings beat in the last quarter and Mr. Market viewed BLK as fully valued. I think this is an opportunity to buy a great company at a discount if you do not have a position in the company. BLK is being considered for The Good Business Portfolio, my IRA portfolio of good business companies that are balanced in all styles of investments.

Source: BlackRock web site

BlackRock is being reviewed using The Good Business Portfolio guidelines. I use a set of guidelines that I codified over the last few years used to evaluate the companies in The Good Business Portfolio (my portfolio) and other companies that I am reviewing. For a complete set of guidelines, please see my article " The Good Business Portfolio: Update to Guidelines, March 2020". These guidelines provide me with a balanced portfolio of income, defensive, total return, and growing companies that hopefully keeps me ahead of the Dow average.

When I scanned the five-year chart, BlackRock has a bumpy chart going up, and to the right is a fairly steady slope for 2016-2017 and 2018, then in 2020, the coronavirus correction hit and BLK dropped with the market. The market has come back up some, and BLK has bounced back like the good business it is and now is still priced below the one year target and a buy.

BlackRock is reviewed in the following topics below.

  • Investment Fundamentals
  • Company Business
  • Conclusions
  • Portfolio Management Highlights

Investment Fundamentals

The Good Business Portfolio

This article was written by

William Stamm profile picture
BSEE The Cooper Union, school of engineering 1966. Engineering manager Harris corp. 23 years Software development, Grumman Corp 10 years as project manager.26 years managing my own IRA accounts, in retirement now with a CAGR of 10.98%

Analyst’s Disclosure: I am/we are long BA, JNJ, HD, EOS, DHR, MO, V, OHI, PM, O, MCD. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Of course, this is not a recommendation to buy or sell, and you should always do your own research and talk to your financial advisor before any purchase or sale. This is how I manage my IRA retirement account, and the opinions of the companies are my own.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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