BlackRock (BLK 0.56%), the world's largest asset manager, has endured a difficult couple of years. As the largest provider of exchange-traded funds (ETFs), as well as a prominent manager of mutual funds and institutional investments, its fortunes are largely tied to the movements of the broader markets.
Last year, BlackRock's stock price was down about 20% while the S&P 500 was also lower by about that much -- 19%, to be exact. The year before, the S&P 500 was up 28%, while BlackRock was up 29%.
But that's not to say BlackRock always tracks with the broader market. In 2020, BlackRock was up 47% compared to at 18% gain for the S&P 500. But that was the year that tech stocks surged as the Nasdaq Composite rose 43%.
And this year, both the S&P 500 and Nasdaq are up quite significantly while BlackRock is down about 6% year to date. What has hurt BlackRock in relation to the market, and is it a buy?
Hurt in the bank sell-off
The primary reason that BlackRock was not more in sync with the broader markets in the first quarter was turmoil in the banking industry. While it's not a bank, BlackRock was hurt by the sell-off after several banks failed, which cut across most of the financial sector. Also, BlackRock had some financial and fintech funds that took a hit in the sell-off.
But the company itself had a decent first quarter, beating estimates. Net inflows into its funds were strong at $110 billion, up about 27% year over year. About one-third of that was into bond ETFs, which accounted for more than 60% of total bond ETF trading volume.
Overall, assets under management (AUM) were down about 5% in the quarter year over year to $9 trillion. Revenue was down 8% to $4.2 billion, while net income fell 19% compared to a year ago to $1.16 billion. Much of BlackRock's revenue is tied to fees based on asset levels, so when AUM is down, BlackRock's revenue will most likely be down.
The good news for BlackRock and its investors is that bull markets typically follow bear markets, and they last longer. Over the past 20 years, BlackRock has posted an average annual return of 14.3% through the end of May, which beats the S&P 500 and Nasdaq 100 over that stretch.
Great dividend
Much of BlackRock's returns can be traced to its excellent dividend.
In fact, BlackRock has one of the best dividends in the market in terms of yield and consistency. It pays out a $5-per-share quarterly dividend at a yield of 3%, which is higher than the S&P 500 average of about 1.6%. Further, it has increased its dividend for 13 straight years. Its payout ratio has crept up to 58%, which is higher than normal, but that is because earnings have been down in this tough market. But BlackRock has huge earnings power as the market leader and as the top provider of ETFs, which are expected to grow exponentially over the next decade.
BlackRock's valuation has not come down much, with a price-to-earnings ratio hovering around 21, which is where it has been for the past few years. But it seems fairly valued at that level.
Overall, there are no red flags to indicate that BlackRock won't continue to dominate its market and soar when the bulls run. In fact, BlackRock Chairman and Chief Executive Officer Laurence Fink said on the latest earnings call that the company would be looking out for "transformational" acquisition or investment opportunities created as a result of the turmoil in the regional banking sector.
"If there is an opportunity to do something transformational, we are going to be prepared to do it. How can we double down on what we're doing with technology? How can we build out our footprint globally at this time?" Fink told analysts on the call.
This blue chip stock is a solid buy right now that should continue to generate excellent long-term results, particularly as we head out of the bear market.
Dave Kovaleski 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.
FAQs
Great dividend
In fact, BlackRock has one of the best dividends in the market in terms of yield and consistency. It pays out a $5-per-share quarterly dividend at a yield of 3%, which is higher than the S&P 500 average of about 1.6%. Further, it has increased its dividend for 13 straight years.
What is the stock market prediction for BlackRock? ›
Stock Price Forecast
The 16 analysts offering 12-month price forecasts for BlackRock Inc have a median target of 765.00, with a high estimate of 920.00 and a low estimate of 542.00. The median estimate represents a +11.73% increase from the last price of 684.70.
Is BlackRock undervalued? ›
Further, at its current price of $656 per share, the stock is trading 13% below its fair value of $750 – Trefis' estimate for BlackRock's valuation. The company surpassed the consensus estimates in the fourth quarter of 2022, despite a 15% decrease in total revenues to $4.3 billion.
Is BlackRock dividend good? ›
The world's largest money manager pays out $5 per share each quarter. The world's largest asset manager, BlackRock (BLK 1.82%), has one of the highest dividend payouts you'll see on the market. BlackRock pays out an astronomical $5 per share dividend per quarter, or $20 per share per year.
What is the BlackRock 5 year forecast? ›
quote is equal to 684.400 USD at 2023-06-11. Based on our forecasts, a long-term increase is expected, the "BLK" stock price prognosis for 2028-06-02 is 1030.666 USD. With a 5-year investment, the revenue is expected to be around +50.59%. Your current $100 investment may be up to $150.59 in 2028.
What are Motley Fool's top 5 growth stocks? ›
The Motley Fool has positions in and recommends Alphabet, Bank of America, Meta Platforms, Nvidia, Palantir Technologies, and PayPal.
What is Motley Fool's all in buy stock? ›
We regularly see similar ads from the Motley Fool about “all in” buy alerts, sometimes also called “double down” or “five star” buys, and they're generally just the type of steady teaser pitch that they can send out all year, over and over with no updates, to recruit subscribers for their flagship Motley Fool Stock ...
What are Motley Fool's double down stocks? ›
What does a double down buy alert indicate? The double down buy alert indicates that a Motley Fool investing service is recommending a stock for the second or even third time.
What will BlackRock stock price be in 2025? ›
According to the algorithm-based pierce predictions of Wallet Investor, as of 12 September, the site's BlackRock stock forecast for 2025 suggested shares could hit $1,036.24 by September 2025.
Is BlackRock stock splitting? ›
BlackRock Inc.
In the past 10 years, BlackRock shares are up about 157%. Despite its rising share price, BlackRock has never implemented a stock split.
Top 50 BlackRock Holdings
| Stock | Company Name | % of Portfolio |
|---|
| MSFT | Microsoft Corp | 4.59% |
| AMZN | Amazon Com Inc | 1.86% |
| NVDA | Nvidia Corporation | 1.51% |
| GOOGL | Alphabet Inc | 1.30% |
49 more rowsSummary. BlackRock has solid fundamentals and is fairly valued, making it a reliable investment option. BlackRock has some decent growth opportunities and limited risks.
Does BlackRock have a good reputation? ›
Blackrock is rated 4.1 out of 5, based on 284 reviews by employees on AmbitionBox. Blackrock is known for Job Security which is rated at the top and given a rating of 4.1. However, Career growth is rated the lowest at 3.4 and can be improved.
Is BlackRock a stable company? ›
Latest BlackRock Inc Stock News
As of June 02, 2023, BlackRock Inc had a $100.2 billion market capitalization, putting it in the 99th percentile of companies in the Investment Management & Fund Operators industry. Currently, BlackRock Inc's price-earnings ratio is 21.1.
Is BlackRock a buy or sell? ›
BlackRock has received a consensus rating of Buy. The company's average rating score is 2.67, and is based on 8 buy ratings, 4 hold ratings, and no sell ratings.
What stock is paying the best dividend? ›
Comparison Results
| Name | Price | Analyst Price Target |
|---|
| XRX Xerox | $15.09 | $15.33 (1.59% Upside) |
| IBM International Business Machines | $135.30 | $146.56 (8.32% Upside) |
| CVX Chevron | $158.86 | $188.58 (18.71% Upside) |
| EOG EOG Resources | $116.25 | $146.44 (25.97% Upside) |
5 more rowsOnce again topping the S&P 500, Pioneer is the highest dividend-paying stock in the index – but with an asterisk. Dividends are irregular, based in large part on how much PXD drills and what the price of oil is, so the trailing dividend is not going to be the exact future dividend.
What is the fair value of BlackRock? ›
As of today (2023-06-06), BlackRock's share price is $676.49. BlackRock's Peter Lynch fair value is $309.20. Therefore, BlackRock's Price to Peter Lynch Fair Value Ratio for today is 2.19.
How much dividend does BlackRock pay per year? ›
Within the last 12 months, the average dividend yield of BlackRock has been 2.82%. Today, it stands at 2.91% and is thus in the average. The average dividend yield indicates that the BlackRock stock if fairly valued.
Have BlackRock recently invested? ›
About. BlackRock has made 296 investments. Their most recent investment was on May 31, 2023 , when SellerX raised €60M .
5 Best Growth Stocks for the Next 10 Years
| Growth stock | Year-to-date return (as of May 10 close) |
|---|
| Apple Inc. (ticker: AAPL) | 33.8% |
| DexCom Inc. (DXCM) | 8.2% |
| Fortinet Inc. (FTNT) | 37.1% |
| Tesla Inc. (TSLA) | 36.8% |
1 more rowMay 11, 2023
Performance of the top 5 stocks of 2023
| Stock Symbol | Market Price Rs | 1-year Returns (%) |
|---|
| M&M | 1,172.00 | 41.54 |
| BRITANNIA | 4,301.85 | 33.84 |
| NTPC | 177.90 | 24.38 |
| HINDUNILVR | 2,535.00 | 22.04 |
6 more rowsApr 10, 2023
Warren Buffett buys Capital One, despite banking woes
Berkshire Hathaway's latest 13F filing showed three new positions during the first quarter of 2023: Diageo plc (DEO) - Get Free Report, Vitesse Energy VTS, and Capital One (COF) - Get Free Report. Diageo isn't really a new position.
What is the most consistent stock of all time? ›
The Best Performing Stocks in History
- Coca-Cola. (NASDAQ: KO) ...
- Altria. (NASDAQ: MO) ...
- Amazon.com. (NASDAQ: AMZN) ...
- Celgene. (NASDAQ: CELG) ...
- Apple. (NASDAQ: AAPL) ...
- Alphabet. (NASDAQ:GOOG) ...
- Gilead Sciences. (NASDAQ: GILD) ...
- Microsoft. (NASDAQ: MSFT)
Paramount Global (PARA) and Louisiana Pacific (LPX) were new positions in Berkshire's portfolio last year. Buffett first bought Paramount PARA +5.9% in the first quarter of 2022 and Louisiana Pacific in the third quarter of 2022. He's owned Apple since 2016.
How to double a $1,000 in the stock market? ›
How to Invest $1000: 7 Smart Ways to Grow $1K in 2023
- Deal with debt.
- Invest in Low-Cost ETFs.
- Invest in stocks with fractional shares.
- Build a portfolio with a robo-advisor.
- Contribute to a 401(k)
- Contribute to a Roth IRA.
- Invest in your future self.
After completing "The Big Score" FlyUS stock should yield a 100% return; invest all money made from "The Big Score" in it. Wait for FlyUS stock to yield a 158% return, then sell all of it.
Should I sell my stock if it doubles? ›
The sell-half rule recommends that you sell half of a stock that doubles in price and you should be quicker to sell aggressive stocks than conservative stocks.
Does BlackRock invest in Apple? ›
BlackRock Inc. has a history of taking positions in derivatives of the underlying security (AAPL) in the form of stock options. The firm currently holds call options representing 1,051,000 of underlying shares valued at $173,309,900 USD and put options representing 0 of underlying shares valued at $0 USD .
Will Blackstone stock go up? ›
Stock Price Forecast
The 18 analysts offering 12-month price forecasts for Blackstone Inc have a median target of 101.50, with a high estimate of 115.00 and a low estimate of 85.00. The median estimate represents a +15.11% increase from the last price of 88.18.
We invest in businesses large and small – businesses that drive the local economy, connect and power our cities, and innovate to change the world. We focus on the long-term sustainability of BlackRock so we can continue to deliver value to our clients, shareholders, employees, and communities.
What stocks are likely to split soon? ›
Stock splits from 2022
| Company | Stock Split Ratio | Payable Date |
|---|
| Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) | 20-for-1 | July 15, 2022 |
| Shopify (NYSE:SHOP) | 10-for-1 | June 28, 2022 |
| DexCom (NASDAQ:DXCM) | 4-for-1 | June 10, 2022 |
| Tesla (NASDAQ:TSLA) | 3-for-1 | Aug. 24, 2022 |
2 more rowsJun 2, 2023
GRAPEVINE, Texas --(BUSINESS WIRE)--Jul. 6, 2022-- GameStop Corp. (NYSE: GME) (“GameStop” or the “Company”) today announced that its Board of Directors has approved and declared a four-for-one split of the Company's Class A common stock in the form of a stock dividend.
Should I buy stock that just split? ›
Splits are often a bullish sign since valuations get so high that the stock may be out of reach for smaller investors trying to stay diversified. Investors who own a stock that splits may not make a lot of money immediately, but they shouldn't sell the stock since the split is likely a positive sign.
Does BlackRock own Pfizer? ›
Hedge funds don't have many shares in Pfizer. The Vanguard Group, Inc. is currently the largest shareholder, with 8.9% of shares outstanding. With 7.8% and 5.7% of the shares outstanding respectively, BlackRock, Inc. and Capital Research and Management Company are the second and third largest shareholders.
Who are the 7 owners of BlackRock? ›
BlackRock was founded in 1988 by Larry Fink, Robert S. Kapito, Susan Wagner, Barbara Novick, Ben Golub, Hugh Frater, Ralph Schlosstein, and Keith Anderson to provide institutional clients with asset management services from a risk management perspective.
Why is BlackRock so powerful? ›
BlackRock is a top shareholder across a wide range of global industries that include oil and gas, technology, retail, big banks, healthcare, weapons manufacturing, and much more. All this makes BlackRock one of the most powerful corporate actors on the planet, whose influence touches every aspect of our daily lives.
Who owns the most BlackRock stock? ›
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. We note that hedge funds don't have a meaningful investment in BlackRock. Looking at our data, we can see that the largest shareholder is The Vanguard Group, Inc.
Is BlackRock in debt? ›
BlackRock long term debt for 2022 was $12.419B, a 14.51% decline from 2021.
How much do you need to invest with BlackRock? ›
The Automatic Investment Plan (“AIP”) allows you to invest in your BlackRock funds on a periodic basis for a minimum of $50 per fund.
The financial health and growth prospects of BLK, demonstrate its potential to underperform the market. It currently has a Growth Score of F. Recent price changes and earnings estimate revisions indicate this would be a good stock for momentum investors with a Momentum Score of B.
Why are people concerned about BlackRock? ›
BlackRock is still the world's number-one investor in fossil fuels and it's still heavily invested in coal. The company has made little progress on deforestation and human rights.
Is investing in BlackRock a good investment? ›
Most of BlackRock's index funds are just as good as any other index provider, including Vanguard. It is a misconception that Vanguard only does index investing. Like BlackRock, they also have managed and passive funds.
Is BlackRock a good investment 2023? ›
BlackRock's stock has been trending higher so far in 2023. The company recently reported better-than-expected Q4 earnings and is continuing to make additional investments in order to grow. BlackRock (NYSE:BLK), the world's largest asset manager, has gained about 6% so far in 2023.
What is the future of BlackRock stock? ›
Stock Price Forecast
The 16 analysts offering 12-month price forecasts for BlackRock Inc have a median target of 765.00, with a high estimate of 920.00 and a low estimate of 542.00. The median estimate represents a +12.93% increase from the last price of 677.44.
Is BlackRock or Blackstone a better investment? ›
Blackrock always trades at a premium valuation compared to Blackstone. It has a forward PE ratio of 20.59 compared to Blackrock's 20.59.
Why is BlackRock so special? ›
BlackRock is one of the world's leading providers of investment, advisory and risk management solutions. We are a fiduciary to our clients. We're investing for the future on behalf of our clients, inspiring our employees, and supporting our local communities.
What is BlackRock's net worth in 2023? ›
Interactive chart of historical net worth (market cap) for BlackRock (BLK) over the last 10 years. How much a company is worth is typically represented by its market capitalization, or the current stock price multiplied by the number of shares outstanding. BlackRock net worth as of June 09, 2023 is $102.5B.
Who is bigger Vanguard or BlackRock? ›
BlackRock and Vanguard AUM is $8.6 & $8.1 trillion, respectively. In total, they both own/invested in 1,600 U.S. companies(Reuters:2022). BlackRock's secret weapon, an advanced trading algorithm called Aladdin(Asset, Liability, Debt and Derivative Investment Network) has been shaping global markets for decades.
Who is the biggest investors in BlackRock? ›
2022
| Name | Equities | % |
|---|
| The Vanguard Group, Inc. | 12,610,031 | 8.39% |
| SSgA Funds Management, Inc. | 6,013,881 | 4.00% |
| Temasek Holdings Pte Ltd. (Investment Management) | 5,092,825 | 3.39% |
| Charles Schwab Investment Management, Inc. | 3,158,518 | 2.10% |
6 more rows4 days ago
BlackRock and Vanguard are the world's largest asset managers with a combined R309 trillion in assets under management (AUM), and they own stakes in most of the world's biggest businesses.
Who are BlackRock's biggest clients? ›
Companies using BlackRock Aladdin for Portfolio and Investment Management include: Microsoft Corporation, a United States based Professional Services organisation with 221000 employees and revenues of $198.27 billion, MetLife, a United States based Insurance organisation with 43000 employees and revenues of $69.90 ...
Does Vanguard own BlackRock? ›
Who are the main shareholders of BlackRock? The main shareholders of BlackRock are institutional investors that hold shares on behalf of their clients. As of 13 April, the institutions with most BLK holdings were The Vanguard Group, State Street and Bank of America.
Which stock will make me rich in 2023? ›
10 of the Best Stocks to Buy for 2023
| Stock | YTD Total Returns Through June 6 |
|---|
| Citigroup Inc. (C) | 6.6% |
| Amazon.com Inc. (AMZN) | 50.7% |
| Walt Disney Co. (DIS) | 6.1% |
| PayPal Holdings Inc. (PYPL) | -8.7% |
7 more rows5 days ago
The story of the top 5 richest investors in the world
- Warren Buffett. Net worth: $103 Billion. Founder & CEO of Berkshire Hathaway. ...
- Jim Simons. Net worth: $28.6 Billion. Founder of RenTech, a quantitative hedge fund. ...
- Ken Griffin. Net worth: $27 Billion. ...
- Ray Dalio. Net worth: $22 Billion. ...
- Carl Icahn. Net worth: $17.5 Billion.
reduced Chief Executive Larry Fink's total compensation to $25.2 million for 2022, a 30% decline from the previous year, according to a regulatory filing.
