Buying the Blackrock dip … kinda

March toward $1,000,000: Week 11 (Oct. 8-12)

They say timing is everything. I got a pretty good taste of that this week.

They also say it’s not about timing the market, but time in the market. Hopefully I’ll get a taste of that in the years to come.

Let me explain …

This Week’s Purchase: Blackrock

When I grabbed a share of Blackrock (BLK) for $462.81 this past Tuesday, I must admit … I was feeling really freakin’ good about it. The purchase doubled my position and, considering it was scraping up against a 52-week low at the time, helped me lower my cost-basis a bit. I figured, since I liked it enough to buy my initial share above $470, I might as well add another share for about $10 less.

My delight turned into remorse – buyer’s remorse – pretty damn quickly, though. As we know, the market took a nose dive Wednesday (DOW dropped more than 800 points) and the dip continued into Thursday. It was a pretty broad decline, but Blackrock was easily my hardest-hit stock, falling all the way to $415.35 at its low.

Needless to say, I wish I would’ve waited a day or so longer than I did to pull the trigger. I mean, I can’t just buy stocks that cost $400-plus at will. I don’t have that kind of cash. When the dust finally settled, my two-share position, which was worth $932.85, was down almost 10%, all the way to $855.40 heading into the weekend.

The good news, if there is any, is that I didn’t actually lose any money. You don’t realize gains or losses until you sell shares, which I don’t plan on doing anytime soon. That said, I’m hoping the second saying – it’s not about timing the market, but time in the market – holds just as true as the first one did.

I guess the other nice thing about the purchase is, regardless of what I paid, is that it added $12.52 in forward annual income to my growing total. It took 11 weeks, but I’m finally up over the $100 mark, sitting at $107.44 as of this post.

More on Blackrock

For those of us holding onto the time in the market truism, Blackrock has a 1-year target estimate of $574.38, which is well above what I originally paid of both of my shares.

It currently pays a $3.13 quarterly dividend, has a divi yield of around 3%, a payout ratio of 34% and has been raising its dividend for eight consecutive years, most recently at an average rate of 11.79% over the course of the last five.

It has a lowish P/E ratio of 12.90 and super low debt-to-equity ratio of 16%. I love Blackrock as a dividend-growth stock.

Here’s some more light reading for those of you who are interested:

Britain’s Lloyds awards $40 billion investment contract to BlackRock

BlackRock’s Shares Look Undervalued With Q3 Earnings Around The Corner

BlackRock joins with Wespath to widen its low-carbon strategy

Stats (Through 11 Weeks)

Portfolio Value: $4,912.31

Overall Gain/Loss: -$115.12

Estimated Annual Income: $107.44 (+12.52 in the past week)

Total Number of Positions: 19 (no change in the past week)

Don’t forget to check out my last few posts to stay updated on the march, and remember I regularly update my portfolio, so check that out every now and then as well.

March on!

3 Responses to “Buying the Blackrock dip … kinda

  • The timing of it is hard. I had the exact same thing, I bought a stock only to watch it tumble. You know what I did, I added more haha In the long run, you’ll forget about this and you’ll be happy you bought shares when you did. Congrats on the addition!

    Bert

    • Thanks, Bert. You have the right idea. When I started buying stocks I did so with the intention to hold for decades. In other words, I make sure I really, really like all my holdings … so, when they tumble, I like them more.

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