This investment management company beat analysts’ earnings estimates by $0.65 last quarter, and four analysts recently raised their EPS forecasts for the company. The current annual dividend yield is 3.21%, paid quarterly.
BlackRock, Inc. (BLK)
From The Prudent Speculator
BlackRock is the largest asset management firm in the world with $7.43 trillion of AUM at the end of 2019. BLK offers a range of investment products and asset classes, both active and passive, to institutional and individual investors.
In addition, the company was just selected by the Federal Reserve to handle several of its massive bond buying programs to help stabilize the fixed income markets, as was also the case back in the 2008 Global Financial Crisis.
We like that BLK is well-diversified amongst product mix which keeps it somewhat agnostic to shifts between asset classes and investment strategies, helping to limit the impact that market swings or withdrawals can have on its AUM. Additionally, a heavier concentration of institutional clients has historically given BLK a more stable group of assets than many of its peers.
BlackRock’s iShares ETF platform is an industry leader and maintains sizable market share. BLK also offers alternative asset investments, which could enhance inflows as new strategies and funds gain traction. Broad opportunities for organic growth for BLK’s numerous offerings lay in the retail space, in U.S. retirement, and in the international distribution of iShares, as well as its up-and-coming risk management platform, known as Aladdin.
John Buckingham, The Prudent Speculator, www.theprudentspeculator.com, 877-817-4394, April 2020