We believe that Blackstone Inc. (BX) has strong, long-term underlying earnings potential, particularly from growth in fee-based AUM, which should benefit from more fund vehicles becoming fee-eligible, advises Stephen Biggar, analyst at Argus Research.
Blackstone had a very healthy $225 billion of fundraising in the 12 months ended Sept. 30, 2025, which we believe speaks to the considerable capabilities and brand name of the franchise. Meanwhile, the company had $188 billion in dry powder at the end of Q3 2025, allowing it to take advantage of market dislocations.
We believe BX has numerous opportunities to put funds to work, including in real estate, private equity, infrastructure, tactical opportunities, and credit assets. We note that Blackstone also had $501 billion of perpetual capital at the end of Q3 2025, up 15% from the prior year, mostly in private equity and credit and insurance. This enables the company to make long-term decisions and to avoid selling at inappropriate times.
In addition, management recently highlighted a robust fund disposition pipeline amid an improving transaction backdrop. The firm believes realization potential is significant in 2026, helped by a lower interest rate environment and record stock prices.
The company also pays a better-than-3% dividend yield. Plus, we expect a healthy increase in the 2026 dividend payment along with our forecast for an 18% rise in distributable earnings for the year.
Recommended Action: Buy BX.
