NEW YORK - Blackrock, the world’s largest asset manager, reported fourth quarter profit of $670 million. BlackRock rocked analyst estimates by nearly 18% with earnings per share of $3.42.
In Q1 last year BlackRock earned $2.17 a share and paid out a $1 dividend implying a payout ratio of close to 50%. Will it now be time for BlackRock to move its dividend up to $2 share as the company looks to be closing in on $4 EPS a quarter.
One company which it would benefit is PNC Financial as its owns 20.3% interest in BlackRock. If one uses the fair value approach to value their investment in BlackRock instead of the equity method the amount of money PNC makes would be significantly enhanced with a payout raise. If the dividend where to reach $2 a share, PNC would receive approximately $72 million from BlackRock a quarter. PNC Report
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