This Big-Time Dividend Stock Adds Another Huge Growth Driver
Blackstone Group (NYSE: BX) has become a big-time dividend stock in recent years. The leading alternative asset manager returns a significant portion of its distributable earnings to investors via dividends. Over the past year, it has paid out over $5 per share in dividends, giving it an annualized yield of more than 6%. That's multiples above the S&P 500's current 1.8% dividend yield.
A big driver of Blackstone's ability to pay a sizable dividend is its large and growing pool of assets under management (AUM). As AUM grows, Blackstone can earn more recurring management fees and capture the additional upside potential from performance revenues as its investment funds meet their return objectives. The company recently made a big move to boost its AUM, which could pay big dividends down the road.
Blackstone is forming a strategic partnership with Resolution Life, a leading global life and annuity insurance consolidation business. The alternative asset management giant is investing $500 million into Resolution Life as part of that company's plan to raise $3 billion of new equity capital to pursue its acquisition strategy. Blackstone will become Resolution Life's investment manager for certain areas, including in the private credit, real estate, and asset-based finance markets.
Source Fool.com
