June 05, 2025 a 07:46 am
BLK: Dividend Analysis - BlackRock, Inc.
BlackRock, Inc. stands as an exemplary institution in the financial industry, demonstrating robust dividend metrics and a strategic approach to capital allocation. The company's dividend profile showcases stability and sustained growth, supported by its strong market position and financial health. While the dividend yield sits modestly at 2.08%, its track record and commitment to shareholder returns highlight its potential as a sound investment for income-focused investors.
📊 Overview
An in-depth look into BlackRock's sectoral position and dividend metrics reveals its commitment to shareholder value. The dividend yield of 2.08% is paired with a solid history of 23 consecutive years of payments. Despite pressure in the broader economic environment, BlackRock has successfully avoided any cuts or suspensions.
| Metric | Value |
|---|---|
| Sector | Financial Services |
| Dividend Yield | 2.08% |
| Current Dividend per Share | $20.67 USD |
| Dividend History | 23 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
BlackRock's steadfast dividend history underscores its reliability as a dividend-paying company, providing income stability for investors. This history is crucial as it indicates resilience and a continuous focus on rewarding shareholders, even amidst market fluctuations.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 10.42 |
| 2024 | 20.4 |
| 2023 | 20 |
| 2022 | 19.52 |
| 2021 | 16.52 |
📈 Dividend Growth
Analyzing dividend growth is pivotal, revealing how well BlackRock adapts and increases shareholder value over time. Moderate growth rates of 7.29% over 3 years and 9.10% over 5 years reflect consistent strategic enhancements.
| Time | Growth |
|---|---|
| 3 years | 7.29% |
| 5 years | 9.10% |
The average dividend growth is 9.10% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Evaluating the payout ratio offers insights into BlackRock's dividend sustainability. A balanced EPS payout ratio of 50.80% indicates prudent financial management.
| Key figure | Ratio |
|---|---|
| EPS-based | 50.80% |
| Free cash flow-based | 82.16% |
The EPS payout ratio of 50.80% suggests a stable dividend policy, while the higher FCF ratio of 82.16% requires scrutiny to ensure long-term sustainability.
⚙️ Cashflow & Capital Efficiency
Analyzing cash flow efficiency highlights BlackRock's ability to generate free cash for dividends while maintaining capital efficiency. This ensures consistent reinvestment in its operations and future growth.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.06% | 3.13% | 4.14% |
| Earnings Yield | 4.14% | 4.54% | 4.84% |
| CAPEX to Operating Cash Flow | 5.15% | 8.31% | 10.75% |
| Stock-based Compensation to Revenue | 3.69% | 3.53% | 3.96% |
| Free Cash Flow / Operating Cash Flow Ratio | 94.85% | 91.69% | 89.25% |
The strong free cash flow yield and efficient capital expenditure management signify BlackRock's robust cash flow generation, facilitating stable dividend payments and capital reinvestment.
🛡️ Balance Sheet & Leverage Analysis
Robust balance sheet analysis assures investors of BlackRock's ability to meet its obligations, indicating a well-maintained balance of debt and equity to support growth.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 29.94% | 24.66% | 22.49% |
| Debt-to-Assets | 10.26% | 7.87% | 7.22% |
| Debt-to-Capital | 23.04% | 19.78% | 18.36% |
| Net Debt to EBITDA | 0.80 | 0.13 | 0.16 |
| Current Ratio | 12.36 | 12.71 | |
| Quick Ratio | 16.40 | 14.28 | 12.71 |
| Financial Leverage | 2.92 | 3.13 | 3.12 |
BlackRock's leverage ratios remain within conservative levels, indicating strength in managing liabilities and ensuring operational liquidity.
📈 Fundamental Strength & Profitability
Strong profitability metrics demonstrate BlackRock's efficient use of resources and strategic decision-making to drive shareholder returns.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 13.41% | 13.98% | 13.72% |
| Return on Assets | 4.59% | 4.47% | 4.40% |
| Margins: Net | 31.21% | 30.81% | 28.97% |
| EBIT | 37.62% | 41.70% | 36.38% |
| EBITDA | 39.77% | 41.81% | 38.59% |
| Gross | 49.42% | 48.05% | 49.16% |
| R&D to Revenue | 1.60% | 3.40% | 3.36% |
High ROE and stable margins illustrate BlackRock's profitability potential, supporting enduring value creation for its investors.
📉 Price Development
⭐ Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 4 | |
| Financial Stability | 5 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Total Score: 35/40
🏆 Rating
Overall, BlackRock, Inc. provides a compelling dividend investment proposition. Considering its solid dividend yield, growth, and extraordinary financial health, the company presents a stable income source with potential for long-term capital appreciation. It is recommended for investors seeking a resilient dividend stock.