BlackRock’s Next $2.88 Quarterly Dividend Distribution Set for June 21, 2018 (BLK)
By: Ned Piplovic,
BlackRock, Inc. (NYSE:BLK) will distribute its next quarterly dividend of $2.88 to all its shareholders of record prior to the company’s ex-dividend date, which is approaching quickly on June 6, 2018.
After spiking to its all-time high at the end of January 2018, the company’s share price pulled back nearly 9%. However, the company’s current share price is still following the company’s long-term growth trend.
Additionally, the company supplemented its share-price growth by boosting its quarterly dividend at the beginning of each of the past eight consecutive years and 14 out of the past 15 years. Investors interested in adding BlackRock to their investment portfolio should do their research and take a position prior to the company’s next ex-dividend date on June 6, 2018, to ensure eligibility for the next round of dividend distributions on its pay date of June 21, 2018.
BlackRock, Inc. (NYSE:BLK)
Based in New York City and founded in 1988, BlackRock, Inc. is a publicly owned investment management company. The firm primarily provides its services to institutional, intermediary and individual investors including pension plans, insurance companies, third-party mutual funds, endowments, public institutions, governments, foundations, charities and banks. Additionally, the company provides global risk management and advisory services.
The firm manages separate client-focused equity, fixed income and balanced portfolios, as well as launches and manages open-end and closed-end mutual funds, offshore funds, unit trusts and alternative investment vehicles including structured funds. Furthermore, the firm launches and manages mutual funds, exchange-traded funds (ETFs) and hedge funds, as well as invests in the public equity, fixed income, real estate, currency, commodity and alternative markets across the globe. The company uses fundamental and quantitative analysis with a focus on both bottom-up and top-down approaches to make its investments. In addition to its head office in Manhattan, the company operates approximately 70 additional offices in 30 countries
The company’s current $2.88 quarterly dividend is 15.2% higher than the $2.50 quarterly dividend payout from the same period last year. This current dividend converts to an $11.52 annual distribution. While this annualized amount seems high, the dividend yield is 2.1% because of the company’s high share price, which currently exceeds $540 per share. Additionally, the company’s share-price growth over the past year suppressed the current yield 7.4% below the company’s 2.3% average yield over the past five years.
The company failed to enhance its annual dividend only once since the firm initiated its quarterly dividend distributions in 2003. Over those 15 years, the firm enhanced its total annual dividend more than 14-fold, which equates to a 19.5% average annual dividend growth rate. Additionally, the company boosted its annual dividend payout at an average rate of 15.6% per year over the last eight consecutive years and enhanced its total annual amount nearly 270% over that period.
Over the past decade, the company’s share price has provided robust asset appreciation to complement the rising dividend income, which is even more evident since late 2015. The company’s share price started the trailing 12 months from its 52-week low of $406.36 on May 25, 2017. From this 52-week low – which was the all-time high at the time – the share price continued setting new highs and gained 46% before reaching its current all-time high of $593.26 on January 16, 2018. After the January peak, the share price pulled back almost 9% and closed on May 24, 2018, at $540.83. This closing price was 33% higher than its 52-week low from one year earlier and nearly twice its level of approximately $280 from five years ago.
With the rising dividend income and a robust capital growth, the company’s shareholders enjoyed substantial total returns over the past several years. Just over the last 12 months, the firm rewarded its shareholders with a total return on their investment on nearly 40%. The total return over the last three years was more than 55%. Lastly, the shareholders more-than doubled their investment with a 107.25% total return over the past five years.
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Ned Piplovic is the assistant editor of website content at Eagle Financial Publications. He graduated from Columbia University with a Bachelor’s degree in Economics and Philosophy. Prior to joining Eagle, Ned spent 15 years in corporate operations and financial management. Ned writes for www.DividendInvestor.com and www.StockInvestor.com.