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BlackRock Manages Strong Growth in 1Q17 on New Flows, ETFs

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Part 6
BlackRock Manages Strong Growth in 1Q17 on New Flows, ETFs PART 6 OF 8

BlackRock’s Dividends Consistent and Rising on Growth in 1Q17

Dividends rise

BlackRock (BLK) rewards its shareholders with dividends and repurchases in line with its performance. 

In 1Q17, BlackRock declared a total dividend of $2.50, a 9% rise over the prior year’s quarter.

BlackRock&#8217;s Dividends Consistent and Rising on Growth in 1Q17

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This dividend translates to an annualized dividend yield of 2.7%, which is higher than the industry average of 2.1%. In comparison, its competitors have the following yields:

  • State Street (STT): 2.0%
  • JPMorgan Chase (JPM): 2.4%
  • Bank of New York Mellon (BK): 1.6%

Together, these companies make up 1.8% of the SPDR S&P 500 ETF (SPX-INDEX) (SPY).

Higher repurchases

BlackRock has repurchased ~$1.1 billion worth of its stock over the past four quarters. In 1Q17, the company’s stock repurchases were worth $275 million. It’s consistently reduced the weighted average of its diluted number of shares to 164.9 million as of March 31, 2017, from 167.4 million on March 31, 2016.

Over the past six months, BlackRock stock has risen 10.4% on new long-term flows, higher ETF business, strong expense management, and continued institutional contribution.

BlackRock could see higher profits on the horizon as its operating profit margin improves. It’s consistently adding assets to its passive offerings. Alpha generation is inevitable for stronger flows and profitability in the company’s active asset management business over the next few quarters.

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