), the world's biggest money manager, is offering investors the
best of both worlds -- dividend growth and capital gains.
The stock is barely within buy range from a bounce off its
10-week moving average last month. It was the first test of
support there since it cleared a 192.09 buy point in a
saucer-with-handle base last November. It's 34% past the
Meanwhile, BlackRock's dividend has more than doubled since
2008. Earlier this year, the firm increased its quarterly
dividend by 12% to $1.68 a share. On an annual basis, that's
$6.72 a share, good for a yield of 2.6% -- above the S&P
500's 2.1% yield.
BlackRock has a best-possible 99 Composite Rating, highest in
the 95-member Finance-Investment Management industry group, which
was ranked 20th out of the 197 industries IBD tracks as of
Thursday. The finance sector is also highly ranked.
BlackRock said earlier this month that it would cut 3% of its
staff while expanding its partnership with Fidelity Investments.
Fidelity customers will be allowed to trade 65 BlackRock iShares
commission-free, up from 30 funds.
"We believe that BlackRock's announcement of job cuts and its
decision to mainly focus on organic growth would enable the
company to improve its market share," Zacks Equity Research said
"Additional emphasis on the growing ETF market will augur well
for BlackRock's growth story," it added.
BlackRock, which manages about $3.8 trillion in assets, has
posted two straight quarters of accelerating earnings growth,
culminating in a 29% gain in Q4. Revenue growth has also picked
Profit for this year is seen rising 14% to $15.60 a share, the
fifth straight annual increase.