Here's How Many Shares of BlackRock (BLK) Stock You Should Own to Get $1,000 in Yearly Dividends
Key Points
BlackRock is a massive money manager.
Its dividend recently yielded 1.9%.
It's been increasing that payout regularly and significantly.
If you're looking for dividend income and you're interested in becoming a shareholder in BlackRock (NYSE: BLK) -- 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.
Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.