BLK gets most of its assets from other institutions, a fact that should help keep those assets in-house; institutional money managers tend to be less fickle and more willing to stay in a fund than nonprofessionals. That said, if BlackRock is willing to court more retail investors (a trend from the BGI acquisition) it'll have a big growth avenue ahead of it in the next few years. The firm generates cash to cover obligations 17 times over, a fact that gives BLK the wherewithal for a dividend hike in the near-term.
As of this writing, the firm's payout stands at $1.50 per quarter. BLK's expertise as a money manager should make them especially sensitive to the benefits of a dividend hike.
The TJX Companies
It's been a stellar year for shareholders in The TJX Companies (TJX): the stock has rallied more than 37% since the first trading day in January. Much of that performance has come from consumers looking to get more bang for their buck. TJX owns off-price chains such as T.J. Maxx, Marshall's and HomeGoods.Part of TJX's success comes from its positioning in between manufacturers and consumers. The firm is critical to apparel and housewares makers because it helps them clear out huge swaths of older inventory without having to discount their own sales channels. On the consumer side, TJX provides a way to get name brands at a substantial discount. By straddling those two groups, TJX can command pricing power on both sides and earn margins that most retailers would kill for. The firm's deep net cash balance sheet position and hefty quarterly cash generation make a dividend hike look likely right now. Currently, the firm's 11.5-cent quarterly payout represents a 1.04% yield -- a return that's been watered down by the stellar price performance TJX has seen long-term. As the dividend pays catch-up, investors benefit. To see these dividend plays in action, check out the at Dividend Stocks for the Week portfolio on Stockpickr. And if you haven't already done so, join Stockpickr today to create your own dividend portfolio.
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