BlackRock Inc. (BLK) Dividends

BLK Price Forecast Based on Dividend Discount Model

A technique commonly used by dividend investors to value dividend-issuing stocks is the Dividend Discount Model (DDM), which seeks to determine a fair share price based on the dividend provided by the company relative to a number of other company-specific factors. In the case of BLK, the DDM model generated by StockNews estimates a return of negative 49.14% in comparison to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for BlackRock Inc are:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, the expected return of -49.14%, based on the stock's current share price and target price based on a dividend discount model, is greater than only 21.4% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, BlackRock Inc bears a discount rate, according to our calculations, lower than only 21.4% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Beta tells us how volatile a stock's price is relative to the broader equity index; as for BLK, approximately only 13.39% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.
• As other dividend issuers in the Financial Services sector, BLK's equity discount rate is less than only 13.42% of those stocks.

BLK Dividends vs. Peers