Tom Reese/Paul Rubillo, Dividend.com
Blackstone Group (BX) just announced it is partnering with the CMS Group to setup a new company by carving out the IT Infrastructure Management and Outsourced Business Services divisions (comprising Card Solutions, Transaction Printing Solutions and ATM Cash Management) of CMS Computers Ltd.
Blackstone plans to own a majority stake in this new company and will have majority representation on the board. CMS Group is currently one of the Top 5 IT Infrastructure Management Companies in India and is the market leader in the Outsourced Business Services segments.
The Bottom Line
We have avoided shares of Blackstone since our early June coverage began, and the shares were trading at $18.46. The company is currently sporting a near 20% dividend yield, which will likely be adjusted down. We would avoid the stock here, and look for better investment opportunities elsewhere.
Blackstone Group (BX) is not recommended at this time, holding a Dividend.com Rating of 2.7 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
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