BlackRock’s $15.3 Trillion Empire Reveals Why These 4 Dividend Stocks Are Worth Watching
The world's largest asset manager just crossed $15.3 trillion in client money, but the dividend stock with the most room to grow its payout is not the one paying the highest yield right now.
Asset managers make money in a simple way. They charge a small annual fee on every dollar of client money they manage, which the industry calls assets under management, or AUM. AUM grows two ways: markets go up, or clients put in more money than they take out (net inflows), and it shrinks when markets fall or when clients withdraw (net outflows). The dividend depends on market levels and client behavior.
There is no product cycle or regulated rate base behind it, so these stocks pay income differently from an industrial or a utility. Right now the background is strong: industry leader BlackRock (NYSE:BLK | BLK Price Prediction) ended its latest quarter with a record $15.3 trillion in AUM. All four names below run on the same fee engine, but their yields are far apart, and the lowest yielder makes the list because its payout grows reliably, while the others make it on the size of their checks.
T. Rowe Price Pays the Highest Yield in the Group
T. Rowe Price (NASDAQ:TROW) yields 4.93%, the highest in this group and a clear high-yield payer. At a recent price of $105.16, the stock has an annualized forward dividend of $5.20 per share.
Dividend safety: The trailing dividend of $5.14 against diluted EPS of $9.96 works out to a payout ratio of about 51.6%. On the latest quarter’s adjusted EPS of $2.57, the $1.30 quarterly dividend uses roughly 50.6% of earnings. Cash flow backs that up. First-quarter operating cash flow was $966.3 million, and the company returned $629 million through dividends and buybacks. Cash on hand is $3.23 billion against $11.0 billion of shareholders’ equity, and debt has historically been low.
Track record: The regular quarterly payment has gone up every year from $0.57 in 2017 to $1.30 in 2026, and quarterly payments in the record go back to 1999. Occasional specials, such as the $3.00 payment in 2021, come on top of that base.
Bull case: AUM hit a record $1.89 trillion, net revenue rose 10.7% to $1.907 billion, and Multi-Asset fees grew 16.1%. The CEO pointed to “positive flows in May and June”. At a trailing P/E of about 11, investors are paying a modest price for a cash-rich payer.
Risk: Clients still pulled a net $6.5 billion in the quarter, mostly from active equity funds, and the investment advisory fee rate fell 1.5 bps to 38.1 bps. If those outflows continue, the market will have to do more of the work to lift fee revenue.
Franklin Templeton Pairs a High Yield With Record Inflows
Franklin Templeton (NYSE:BEN), which formally took that name on August 17, yields 4.04%, which also puts it in high-yield territory. Shares trade near $31.99, with an annualized forward dividend of $1.32 per share.
Dividend safety: On a GAAP basis coverage is thin. The trailing dividend of $1.31 against EPS of $1.47 is a payout ratio near 89.1%. One-time items drove much of that, including a $100 million regulatory settlement, a $33 million impairment and $77.2 million of severance. On adjusted fiscal third-quarter EPS of $0.72, the $0.33 dividend uses about 45.8%. The company also returned $521.5 million in the quarter, including $348.1 million of buybacks, so it has cash to left over after the dividend.
Track record: The regular quarterly payment has gone up once a year in the available records, from $0.23 in late 2017 to $0.33 today. Specials such as the $3.23 payment in 2018 are separate from that base.
Bull case: AUM reached a record $1.8 trillion, long-term net inflows were $18.4 billion and were positive in every asset class and region. Alternatives AUM hit a record $294.2 billion. The adjusted operating margin expanded to 28.0% from 23.7%, and the forward P/E of about 10 is far below the trailing 22.
Risk: Western Asset Management lost another $1.1 billion to long-term net outflows, and more legal or regulatory charges would keep GAAP coverage tight.
Invesco Has the Most Dividend Cushion After Its Reset
Invesco (NYSE:IVZ) yields 2.82% at a price of $29.51, with an annualized forward dividend of $0.86 per share. The stock trailed its peers Friday and is down 8.04% over the past month, which lifts the yield for new buyers.
Dividend safety: Trailing GAAP EPS is -$0.68, so the GAAP payout ratio tells you nothing useful. Adjusted second-quarter EPS of $0.71 covers the $0.215 dividend at a payout ratio near 30.3%, the lowest of the four. Operating cash flow was $734.2 million in the quarter, and total debt fell to $1.62 billion from $1.97 billion.
Track record: Invesco cut its quarterly dividend from $0.31 to $0.155 in 2020. The payout has gone up every year since: $0.17, $0.1875, $0.20, $0.205, $0.21, and now $0.215.
Bull case: Invesco QQQ Trust (NASDAQ:QQQ) became an open-end ETF on December 20, 2025, so Invesco now collects management fees on it for the first time. Net long-term inflows hit a record $45.1 billion in the quarter, and the adjusted operating margin rose to 37.5% from 31.2% a year ago. Buybacks are up 80% year to date, and the stock trades at a forward P/E near 10.
Risk: Fundamental Equities still lost $7.7 billion to long-term outflows, a reminder that the active side of the business keeps shrinking even as the ETFs grow.
BlackRock Trades Current Yield for Reliable Dividend Growth
BlackRock yields just 2.05% at $1,081.88, the lowest in the group. It belongs here because its dividend keeps growing reliably. The annualized forward dividend is $22.92 per share.
Dividend safety: The trailing dividend of $21.88 against EPS of $41.78 is a payout ratio of about 52.4%. On adjusted second-quarter EPS of $13.91, the $5.73 quarterly dividend uses roughly 41.2%. An adjusted operating margin of 45.9% leaves room for both the dividend and roughly $2 billion of planned buybacks this year.
Track record: The quarterly payout has grown from $0.78 in 2009 to $5.73 in 2026, with a higher rate every year since 2010. The latest increase was 10%.
Bull case: BlackRock brought in $192 billion of net inflows in the quarter and $868 billion over 12 months, grew organic base fees 10%, and pushed iShares past $6 trillion. Technology subscription revenue of $566 million grew 13%, adding recurring income that does not depend on AUM. The forward P/E of about 16 sits well below the trailing 26.
Risk: Bringing GIP, HPS and Preqin into the business raised the share count and added integration risk, and losses on minority stakes can make GAAP results swing away from adjusted figures.
Matching the Fee Engine to Your Income Goal
T. Rowe Price and Franklin Templeton currently pay the most income, and T. Rowe’s cash-heavy balance sheet makes it the stronger of the two. Invesco has the most room on an adjusted payout basis and the clearest turnaround, while BlackRock pays the least today and has the strongest record of dividend growth. All four face the same threat: fees keep falling as money moves to low-cost passive funds, and active managers keep losing client assets. Net flows are the number to check each quarter, because they show whether fee income, and the dividend it pays for, will keep growing. Picking the right mix for a monthly income schedule is its own exercise, and we walked through the payout calendar and withdrawal order in a free guide to the Paycheck Portfolio method.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
