Asset manager BlackRock (NYSE:BLK) increased its quarterly dividend on Thursday to $4.13 per share.
That's an increase of 14% from $3.63 per share last quarter. The dividends will be paid out on March 23. On an annual basis, BlackRock will pay $16.52 per share to investors, one of the highest payouts in the financial sector.
The dividend yield, which is the percentage of the share price that goes to the annual dividend, is about 2.2%. The payout ratio, which is the percentage of earnings that go to the dividend, is about 39%.
This is the 12th straight year of dividend increases for BlackRock, which is the largest asset management firm in the United States with $8.6 trillion in assets under management (AUM).
BlackRock is coming off a strong 2020 when the stock price increased 47.2%. It saw AUM climb 17% in 2020 to $8.6 trillion. The company generated $16.2 billion in revenue for the year, an 11% increase year over year, and $4.9 billion in net income, a 10% increase. Most of the revenue came from investment advisor fees, which were up 7% to $12.6 billion.
The firm reported $391 billion in net inflows for the full year. Almost half of that total went into its iShares exchange-traded funds, which had $185 billion in net inflows. The full-year EPS was $33.82, up 19%.
In the fourth quarter, revenue climbed 13% year over year to $4.5 billion, while net income rose 19% to $1.5 billion, or $10.02 per share. ETFs had $78 billion in net inflows in the quarter, about 61% of the $127 billion total.
The stock price is up about 3% year to date. The high dividend and solid yield of this market leader make BlackRock an attractive stock.