Then and Now – BlackRock
Welcome to another Then and Now post, a continuation of my series where I revisit some older blogposts and either rip them to shreds (because my thinking has totally changed on such subjects, including key stocks) or I’ll confirm my position on some specific stocks or ETF investments.
You can read about my previous Then and Now posts on certain stocks (the good, and the not-so-good!) during this post. Some DIY stock selection does come with risks!
Today’s post is about my ownership in a significant multinational investment company: BlackRock.
Then and Now – BlackRock
Unlike some other stocks in my portfolio, I actually haven’t owned BlackRock (BLK) for very long.
Enbridge (ENB) was my very first individual stock, purchased a long time ago….
Since that ENB purchase, I’ve loaded up on Canadian bank stocks, telco companies and utilities over the years. I’ve also purchased industrial companies like Canadian National Railway (CNR) and Waste Connections (WCN), among others, not focused on income but for price growth.
I’ve also purchased a few individual U.S. stocks over the last 15 years as a DIY investor, for growing dividend income but also price appreciation. Some examples include:
I started writing about my ownership in BlackRock many years ago, in various articles on my site and that stock-press has ramped up in recent years as I share more about my portfolio and why.
For those that don’t know, BlackRock (BLK:US) is the world’s largest asset manager but they’ve had a tough stock price run of late. Last year (2022), BlackRock’s stock price was down a bundle just like the broader S&P 500 index was. It hasn’t quite rebounded to date…more below.
Fast forward to this year (at the time of this post), the S&P 500 and Nasdaq are up quite significantly while BlackRock remains somewhat flat.
Then – BLK
After focusing on building my DIY portfolio of Canadian “TULF” stocks, and beyond owning PG and JNJ in the early days as a DIY investor, I was looking at expanding my USD stock portfolio – and BlackRock came to the top of my list in early 2016.
I made my initial purchase, then, just over $300 USD per share.
I bought BLK for my RRSP since I appreciated the dividend then, the opportunity for the company to grow its dividend over time, and potential share price appreciation as well – as the world’s larget asset manager.
Since my initial purchase in 2016, BLK has delivered albeit a bit less than I thought it might!?
Now – BLK
Over the years, I’ve been slowly adding to my BLK position, with more purchases in 2017 and 2019 specifically.
I had good intentions of adding more BLK to my porfolio in 2021 but my goodness, I could not justify (nor afford) the stock price when it was approaching $900 USD per share.
I own BLK for income stability inside my RRSP that should help fund future semi-retirement income needs as I slowly drawdown that account.
BLK now pays out a $5.00 USD dividend per share and that dividend payment should grow by 5-10% per year, over the coming years based on analyst projections.
Source: BlackRock site.
Then and Now – BlackRock summary
When it comes to longer-term returns, it is my hope that BLK will continue to largely keep pace with the broader index, like the S&P 500 returns, represented by low-cost ETF that BlackRock offers: IVV.
Just for interest sake, I’ve compared BLK vs. IVV vs. low-cost ex-Canada ETF (that I own) XAW below:
Source: Portfolio Visualizer.
Given the current circumstances of many beaten-down U.S. equities, I think the case can be made that BLK remains not only a very solid business investment for the decades ahead but also an investment that represents some value right now.
Check out more selected Then and Now posts and stock ownership decisions below:
I posted my update with TD Bank here.
This was my update about owning Telus.
Check out my fall 2022 update with Waste Connections (WCN).
I’ve owned Canadian National Railway (CNR) since 2016.
I’ve owned Fortis (FTS) stock for many years, and still do at the time of this post.
Do you own BLK? Have you considered owning it? Why or why not?
Thanks for reading,