Dividend Stock: BLK

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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!

Check out our YouTube review of BLK!

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4 Responses to Dividend Stock: BLK

  1. RichUncle EL says:

    Yes that is a nice yield and from what I see a successful company. On a dip with lower prices this stock might be a very decent play.

  2. Haven’t given Blackrock a hard look. My objective for reviewing asset management firms is whether or not they were able to sustain and increase their dividend during the financial crisis. That’s why I typically lean towards TROW and BEN (I know they are completely different types of companies than BLK). Thanks for sharing!

    Bert

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