) is raising its dividend and showing acceleration in its
quarterly results, so it's worth a look if you're seeking income
and growth potential.
The asset manager said Jan. 17 that it's hiking its quarterly
payout by 12% to $1.68 a share. It also reported fourth-quarter
earnings on that day, achieving a 29% gain. That improved on Q3's
Q4 revenue increased 14% to $2.54 billion, heating up from
Q3's 4% rise.
IBD's CAN SLIM investing strategy calls for focusing on
companies displaying strong gains in their quarterly results, and
BlackRock is showing exactly that. However, EPS growth could slow
in the current quarter, with Wall Street expecting just a 10%
The New York City-based company's solid recent performance has
helped it earn spots lately in some key IBD screens, including
the Big Cap 20 and the IBD 50.
BlackRock's 92-member industry group is also showing strength.
Finance-Investment Management ranked No. 39 out of IBD's 197
groups as of Monday's edition, up moderately from its ranking in
It can be a good approach to stick to the top 20 to 40
industry groups, and investment managers have just barely moved
into that realm.
With its latest increase, BlackRock now provides an annual
yield of about 2.8%. The company has hiked its payout for four
years in a row.
Another of BlackRock's strengths is increasing institutional
ownership. The number of U.S. mutual and hedge funds with a stake
has increased for eight quarters in a row, according to IBD data.
That helps explain the stock's stellar up-down volume ratio of
2.3 and its IBD Accumulation-Distribution Rating of A+.
In terms of chart action, BlackRock has traded in a narrow
range for a few weeks, creating a three-weeks-tight pattern with
a possible buy point at 238.72. Watch to see if the stock can
break through that level in heavy turnover.
A three-weeks-tight structure generally serves as a way to add
to an existing position, but aggressive investors can use it as
an opportunity to buy an initial batch of shares.