Easy Extra Money Idea of the Day:
The heavy hitter dividend paying stock in my divided portfolio is BlackRock (BLK). While it’s yield is usually “only” in the 2.5 – 3% range, they actually pay $2.29 per share each quarter! So for only 1 share of BLK stock, you are paid back almost $10 a year!
Of course, as with all investing, BLK does come with its own risks. They are a global company with operations all over the world and service both institutional and individual investors. Because of this, the stock usually gets lumped into the banking sector and trades based on interest rate risk. BLK also provides global risk management, advisory services, and they host pension plans and endowments for various institutions and governments. I like that the current chairman and CEO is a co-founder of the company and one of their main focuses is on passive investing through ETFs (Exchange Traded Funds). Many investors are choosing ETF’s over mutual funds because of the lower expense ratio and some are also choosing ETF’s over individual stocks because there is less implied volatility with an ETF. All of which is great news for BLK because, due to their size and scale, they can offer the lowest ETF expense ratios. In fact, they own one of the premium ETF providers, iShares!
- BLK is a publicly owned investment manager
- Founded in 1988 and based in New York City
- Dividend Payout Schedule: 3-6-9-12
- To create monthly dividend income, pair with an investment from Dividend Payout: 1-4-7-10 and Dividend Payout: 2-5-8-11
Check out our YouTube review of BLK!