Dividend Yield: 7.4%
1-Year Total Return: 58%
Blackstone (BX), the private equity giant, isn’t off to a great start in 2014. On a price basis, BX stock is down about 3% for the year-to-date, getting hurt with the rest of the risk-off market. But it’s hard to see that trend lasting.
It’s not as if the Blackstone cash machine is running out of bills. A disappointing initial public offering of La Quinta Holdings (LQ) saw shares snap back the following session — in a down market. That IPO came less than a week after BX bought auto-parts maker Gates Global for $5.4 billion — the largest private-equity buyout of an industrial company in more than four years.
Between the almost gluttonous dividend yield of 7.4% and Blackstone’s solid track record of essentially printing money, shares are sure to return to their total-return winning ways. Even with the recent underperformance, BX stock has a 1-year total return of 58%.