BlackRock (BLK -0.50%), 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.