Here's How Many Shares of BlackRock (BLK) Stock You Should Own to Get $1,000 in Yearly Dividends
To earn $1,000 in yearly dividends from BlackRock (BLK), an investor would need to purchase 48 shares, costing approximately $52,800 at the current price of $1,100 per share. BlackRock's annual dividend payout is $20.84 per share, with a dividend yield of 1.9%. The company has consistently raised its dividend for 16 years, averaging a 7.5% increase over the past five years. With a payout ratio under 50%, there is potential for further dividend growth, making BlackRock an attractive option for dividend-seeking investors.
If you're looking for dividend income and you're interested in becoming a shareholder in BlackRock (BLK -0.88%) -- the world's largest asset manager, with more than $12 trillion under management -- you might wonder how well it pays to own the stock. For instance, how many shares would you need to buy to collect $1,000 annually?
Here's your answer: 48 shares. It doesn't sound like all that many shares, but there's more to consider when it comes to BlackRock stock.
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First, a review of that dividend math. BlackRock shares recently traded at about $1,100 per share, and the stock's annual dividend payout was $20.84 per share. (Its recent dividend yield was 1.9%.) If you're looking to collect about $1,000 annually, you'd divide that $1K figure by $20.84, getting 47.98. So you'd need 48 shares.
That may not seem like very many shares, but remember that each share has a $1,100 price tag. Those 48 shares would cost you about $52,800.
Note that BlackRock has been raising its payout for 16 years in a row. Over the past five years, the payout increased by an annual average rate of 7.5%. So while the dividend yield isn't massive right now, it is growing at a respectable clip. If it keeps up that rate, you might be collecting $2,000 annually in dividends a decade from now.
The stock's payout ratio -- the percentage of earnings paid out in dividends -- is quite reasonable, too, at less than 50% in the most recent quarter. That leaves plenty of room for further increases.
There's a lot to like about BlackRock, such as revenue growing by double-digit percentages. So take a closer look to see if it's a good fit for your portfolio.
