By Michael Calia 

BlackRock Inc. said its earnings fell 3.5% in the most recent quarter, although assets under management rose as the firm posted positive inflows.

BlackRock also raised its dividend to $2.18 a share from $1.93, while boosting its share-buyback program by 6 million shares under its existing plan for a total of as many as 9.4 million shares.

Earnings topped analysts' expectations while revenue fell short. Shares of the firm were inactive premarket.

BlackRock--which is the largest asset manager in the world--was expected to show that it has gained inflows as investors pull money from Pacific Investment Management Co., whose clients have been pulling money at a steady clip since Bill Gross left the firm in September to join Janus Capital Group Inc.

Assets under management rose about 8% to $4.65 trillion from a year ago and about 3% from $4.52 trillion at the end of the previous quarter.

The company's iShares exchange-traded-fund business had net inflows of $44.2 billion, more than half coming from equity. Total long-term net inflows were $87.8 billion, and retail inflows were $23 billion.

For the quarter ended Dec. 31, the firm reported earnings of $821 million, or $4.77 a share, down from $851 million, or $4.86 a share, a year ago. Excluding certain items, earnings fell to $4.82 a share from $4.92.

Revenue rose slightly to $2.78 billion.

Analysts polled by Thomson Reuters had estimated $4.67 a share in earnings and $2.87 billion in revenue.

Write to Michael Calia at michael.calia@wsj.com

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