Introduction

Why Investing in Black-Owned Businesses Matters

Investing in Black-owned businesses and stocks is a powerful way to build wealth, promote economic independence, and strengthen Black entrepreneurship.

 For too long, Black entrepreneurs and businesses have faced systemic barriers, such as limited access to funding, discriminatory lending practices, and underrepresentation in major industries.

 By strategically investing in Black-owned companies, we can help close the racial wealth gap while creating new opportunities for financial growth.

Black investors currently have fewer opportunities to invest in publicly traded Black-owned businesses, but that doesn’t mean there aren’t strong companies making an impact.

 Supporting these businesses not only allows investors to grow their portfolios but also ensures that capital is directed toward businesses that reinvest in Black communities.

How Investing in Black-Owned Stocks Can Make a Difference

✅ Closes the racial wealth gap – Investing in Black-owned businesses ensures economic growth in underserved communities.
✅ Creates jobs and opportunities – When Black-owned businesses thrive, they hire more Black employees and entrepreneurs, further strengthening the economy.
✅ Encourages financial independence – Owning shares in growing companies allows Black investors to build wealth and pass it on to future generations.
✅ Supports industry representation – Investing in Black-owned stocks helps ensure that Black entrepreneurs remain competitive in major industries like real estate, media, banking, and healthcare.

Six Black-Owned Stocks to Consider Investing In

This blog will explore six publicly traded Black-owned stocks across multiple industries that offer strong growth potential:

1️⃣ RLJ Lodging Trust (RLJ) – A real estate investment trust (REIT) that owns and operates upscale hotels across the U.S.
2️⃣ Urban One, Inc. (UONE) – The largest Black-owned media company in the U.S., focusing on Black culture and digital media.
3️⃣ Carver Bancorp, Inc. (CARV) – The oldest Black-owned bank holding company, serving African American communities.
4️⃣ Broadway Financial Corp. (BYFC) – The largest Black-owned minority depository institution, financing businesses in underserved areas.
5️⃣ Axsome Therapeutics (AXSM) – A biopharmaceutical company focused on innovative treatments for neurological disorders.
6️⃣ Citizens Bancshares Corporation (CZBS) – A bank holding company that provides financial services to low-income and underserved communities.

By investing in these companies, individuals can support Black business growth while also building wealth for themselves and their families.

 Let’s dive deeper into these Black-owned stocks and why they deserve a place in your investment portfolio! 📈💰

1. RLJ Lodging Trust (RLJ) – A Leader in Black-Owned Real Estate

📌 Overview

• RLJ Lodging Trust is a real estate investment trust (REIT) that owns and operates upscale hotels across the U.S.
• The company reported $1.33 billion in revenue in 2023, making it one of the largest Black-owned publicly traded companies.
• Founded by Robert L. Johnson, the founder of BET (Black Entertainment Television), RLJ Lodging Trust is a major player in the hospitality industry.

📌 Why Consider Investing?

✅ A Strong Player in the Hospitality and Real Estate Industry

• RLJ Lodging Trust owns a diverse portfolio of hotels, including Marriott, Hilton, and Hyatt properties, across key U.S. markets.
• The company focuses on high-growth, high-demand locations, ensuring consistent revenue generation.

✅ REITs Provide Steady Income Through Dividends

• As a real estate investment trust (REIT), RLJ is required to distribute at least 90% of its taxable income to shareholders through dividends.
• This makes it an attractive option for income-seeking investors who want passive income from real estate investments.

✅ Expanding Market Presence with a Focus on High-End Properties

• RLJ Lodging Trust continues to expand its presence in major metropolitan areas, investing in premium hotels that cater to business travelers and tourists.
• The company’s strong financial position and strategic acquisitions indicate continued growth potential.

 For investors looking to gain exposure to the hospitality industry, RLJ Lodging Trust offers a unique opportunity to invest in Black-owned real estate while earning steady returns.

2. Urban One, Inc. (UONE) – The Largest Black-Owned Media Company

📌 Overview

• Urban One, Inc., formerly known as Radio One, is the largest Black-owned media company in the U.S.
• The company owns radio stations, digital platforms, and television networks, catering specifically to Black audiences.
• Urban One amplifies Black voices, providing news, entertainment, and cultural content that reflects the Black experience.

📌 Why Consider Investing?

✅ Dominant Media Presence in the Black Community

• Urban One owns and operates over 50 radio stations in major U.S. markets, reaching millions of Black listeners.
• The company is a trusted media source, creating content that speaks directly to Black culture, politics, and entertainment.

✅ Expanding into Digital and Streaming Platforms, Increasing Growth Potential

• Urban One is shifting its focus toward digital media and streaming services, tapping into new revenue streams beyond traditional radio broadcasting.
• The company is partnering with digital content creators and advertisers, capitalizing on the growing demand for Black-focused content.

✅ A Strong Commitment to Black Culture and Representation in Mainstream Media

• Urban One provides authentic storytelling and representation, ensuring that Black perspectives remain central in American media.
• As media consumption continues to evolve, Urban One’s focus on digital transformation positions it for long-term growth.

 For investors looking to support Black media while tapping into a growing industry, Urban One, Inc. is a solid investment choice with a strong cultural and financial impact. 

3. Carver Bancorp, Inc. (CARV) – The Oldest Black-Owned Bank Holding Company

📌 Overview

• Carver Bancorp, Inc. is one of the most historic Black-owned financial institutions, founded to serve predominantly African American communities.
• The company has a long-standing mission of providing financial services and economic opportunities to underserved populations.
• In 2023, Carver Bancorp reported:
  • $723.22 million in total assets
  • $31.30 million in total revenue

📌 Why Consider Investing?

✅ Aims to Close the Racial Wealth Gap by Providing Loans to Black Entrepreneurs and Homeowners

• Carver Bancorp prioritizes financial inclusion, offering loans to Black-owned businesses, first-time Black homeowners, and community development projects.
• The company has played a crucial role in helping Black entrepreneurs secure capital when mainstream banks have often denied them funding.

✅ Designated as a Community Development Financial Institution (CDFI), Increasing Funding Opportunities

• Carver Bancorp is recognized as a Community Development Financial Institution (CDFI), a designation that allows it to receive funding and grants from the federal government to support economic growth in Black communities.
• CDFI banks play a key role in bridging financial gaps for underserved populations.

✅ Historically a Strong Supporter of Black Economic Development

• Carver Bancorp has been a pillar of Black financial empowerment for decades.
• The bank reinvests significantly in Black-owned businesses, housing developments, and local economic initiatives.

 Investing in Carver Bancorp means supporting a financial institution that is deeply committed to economic justice and Black community growth while also benefiting from long-term financial returns.

4. Broadway Financial Corp. (BYFC) – The Largest Black-Owned Minority Depository Institution

📌 Overview

• Broadway Financial Corp. is the holding company for City First Bank, the largest Black-owned minority depository institution in the U.S.
• The bank specializes in financing businesses, real estate, and community development projects in underserved communities.
• In 2023, Broadway Financial Corp. reported:
  • $1.4 billion in total assets
  • $34.82 million in total revenue

📌 Why Consider Investing?

✅ Provides Critical Financial Services to Black-Owned Businesses

• Broadway Financial focuses on small business loans and commercial real estate financing, helping Black entrepreneurs start, sustain, and scale their businesses.
• The bank plays a critical role in funding Black-led enterprises, ensuring greater financial independence for entrepreneurs.

✅ Recognized as a CDFI, Giving It Access to Federal Funding

• As a Community Development Financial Institution (CDFI), Broadway Financial has access to specialized federal funding, grants, and investment opportunities.
• This designation allows it to offer more competitive loans and banking services to Black and low-income communities.

✅ A Stable and Growing Financial Institution Committed to Black Economic Empowerment

• Broadway Financial continues to expand its footprint, ensuring that more Black businesses and families can access financial resources.
• Its focus on long-term community reinvestment makes it a socially responsible investment with strong growth potential.

 Broadway Financial Corp. offers a strong investment opportunity for investors looking to support Black banking institutions and promote financial inclusion while making a meaningful economic impact. 💰🏦

5. Axsome Therapeutics (AXSM) – Innovating in Healthcare

📌 Overview

• Axsome Therapeutics is a biopharmaceutical company focused on developing novel therapies for central nervous system (CNS) disorders, including mental health conditions and neurological diseases.
• While specific financial details were not available, Axsome remains a key player in Black-owned healthcare innovations and is one of the few Black-led biotech companies publicly traded.

📌 Why Consider Investing?

✅ Focuses on Groundbreaking Treatments in an Industry with High Growth Potential

• The healthcare and biopharmaceutical sector is one of the fastest-growing industries due to increasing demand for innovative medical treatments.
• Axsome is working on new drugs for conditions such as depression, migraines, and Alzheimer’s disease, targeting high-need areas with major market potential.

✅ Expanding Research and Development for Mental Health and Neurological Conditions

• The company is dedicated to advancing medical research in mental health, an area that disproportionately affects Black communities but remains under funded in clinical studies.
• New FDA-approved treatments can significantly boost company value and increase stock performance.

✅ Part of an Essential Industry with Long-Term Profitability Prospects

• Healthcare companies tend to be resilient, even during economic downturns, as medical treatment is always in demand.
• Investing in biotech and pharmaceutical innovations offers a long-term financial opportunity, especially for investors looking to diversify into high-growth, high-impact sectors.

 Axsome Therapeutics is an exciting opportunity to invest in Black leadership in the healthcare industry while supporting the development of life-changing treatments. 🏥💡

6. Citizens Bancshares Corporation (CZBS) – A Champion for Financial Inclusion

📌 Overview

• Citizens Bancshares Corporation is a Black-owned bank holding company that provides financial services to low-income and underserved communities.
• Recognized as a Black-owned publicly traded company, it works to expand access to banking and lending solutions that promote financial inclusion.

📌 Why Consider Investing?

✅ Supports Low-Income and Underbanked Communities, Helping Close Economic Disparities

• Many Black and minority communities remain underbanked due to historical discrimination in lending practices.
• Citizens Bancshares Corporation offers checking, savings, and loan products to communities that have traditionally faced limited access to capital.

✅ Expanding Financial Services and Offering Loans to Black Entrepreneurs

• The company prioritizes lending to Black-owned businesses and first-time homeowners, helping build wealth and economic stability in historically excluded communities.
• As more minority-owned businesses grow, demand for accessible financial services increases, further strengthening Citizens Bancshares Corporation’s market position.

✅ Part of an Industry That Is Critical for Community Development and Wealth-Building

• Community-focused banks play a vital role in helping Black families and entrepreneurs secure loans, mortgages, and business financing.
• Investing in Black-owned banks means supporting economic empowerment while also benefiting from the financial growth of a sector essential to wealth-building.

 For socially responsible investors, Citizens Bancshares Corporation offers a chance to invest in financial equity and inclusive economic growth. 💰🏦

The Importance of Investing in Black-Owned Stocks

📌 Why It Matters

Investing in Black-owned businesses and publicly traded companies is more than just financial gain—it’s an opportunity to:

✅ Create Jobs and Strengthen Black Economic Power – Black-owned companies hire more Black workers, creating career opportunities and economic mobility within the community.
✅ Reduce the Racial Wealth Gap – Investing capital directly into Black-owned businesses helps increase financial equity and business growth.
✅ Encourage Entrepreneurship and Business Expansion – Publicly traded Black-owned companies serve as role models for Black entrepreneurs, proving that scaling to IPO status is possible.
✅ Provide Long-Term Financial Growth for Investors – Many Black-owned companies are in growth sectors like finance, real estate, media, and healthcare, offering long-term investment potential.

📌 Considerations for Investors

Before investing in any stock, including Black-owned companies, it’s essential to:

• Research a company’s financials, market position, and long-term potential before committing capital.
• Understand that some of these stocks are small-cap or micro-cap, meaning they can be more volatile than larger, well-established companies.
• Diversify investments – Consider balancing high-risk and stable investments to mitigate financial risks while maximizing growth.
• Consult a financial advisor to ensure your investment strategy aligns with your financial goals and risk tolerance.