What’s the biggest and most powerful company that most retail traders don’t talk about? I’d say it’s BlackRock (NYSE:BLK), the financial giant that might be called the heavyweight champion of mutual funds and exchange traded funds. Furthermore, you can get reliable dividend distributions simply by purchasing and holding BlackRock stock for the long term.
BlackRock is expected to release its second-quarter 2024 earnings report on July 19. The company has a good track record of earnings beats, and maybe you’re thinking about buying some BlackRock shares ahead of the quarterly report. That’s a great idea because BlackRock is a stable company with high potential returns.
BlackRock Is the U.S. Investable Fund King
It might sound like an exaggeration to call BlackRock the American fund king. Yet, in the U.S., BlackRock offers more than 600 mutual funds and ETFs. I couldn’t even begin to list all of the ETFs that BlackRock has under its popular iShares brand.
BlackRock has generated “$1.9 trillion of net inflows in the past five years globally.” It’s fair to conclude, then, that BlackRock’s dividend (which we’ll discuss in a moment) is safe and the company can easily afford to pay the distributions.
And by the way, BlackRock definitely isn’t afraid to try out modern fund concepts. Not very long ago, BlackRock introduced a spot Bitcoin (BTC-USD) ETF called the iShares Bitcoin Trust (NASDAQ:IBIT). That’s a smart move for BlackRock, as inflows for U.S. spot Bitcoin ETFs have generally been quite strong lately.
How Can You Earn $500 a Month From BlackRock Dividends?
Now, here’s the nitty-gritty on BlackRock’s dividends. The company has a history of periodically increasing its quarterly cash payouts, and BlackRock’s most recent quarterly dividend distribution was $5.10.
That translates to a forward annual dividend payment of $5.10 x 4, or $20.40. In percentage terms, BlackRock’s forward annual dividend yield would be around 2.5% or 2.6%.
So, how much money would you need to invest in BlackRock stock in order to generate dividend income of $500 per month, or $6,000 per year? To calculate this, we would take $6,000 and divide it by the forward annual dividend ($20.40 in this case).
Next, $6,000 divided by $20.40 equals 295 BlackRock shares, which is what you would need to generate $500 per month in dividend distributions. In dollar terms, assuming the stock trades at around $788 per share, you would need $788 times 295 shares, or $232,460.
Of course, this doesn’t mean you need to have $232,460 to benefit from BlackRock’s quarterly cash payouts. It’s fine to buy BlackRock stock even if your portfolio size isn’t huge.
BlackRock Stock: Don’t Hesitate If You Like Safe Dividends
BlackRock is a financial-market behemoth that derives revenue from a wide variety of funds. BlackRock’s dividend seems reasonably safe.
Sure, BlackRock has a quarterly financial report coming out in July. Yet, there’s really no need to hesitate if you’re considering buying BlackRock stock.
The company will likely continue to pay decent dividends irrespective of BlackRock’s second-quarter financial results. So, now is the time to get started with a right-sized portfolio position in ultrareliable BlackRock.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
