Tags: BlackRock | CEO | Dividend | Stocks

BlackRock CEO Fink: I Like Dividend Stocks

Wednesday, 17 Aug 2011 08:21 AM

BlackRock CEO and bond fan Laurence Fink says these days, he likes stocks over fixed-income, especially dividend-paying stocks.
BlackRock manages $3.7 trillion in assets.

"You have companies trading with dividend yields above 5 percent. With interest rates as low as they are, equities are a very powerful alternative for income, long-term inflation protection and price appreciation," Fink tells Barron's

In particular, General Electric is yielding 3.8 percent, Chevron is yielding 3.3 percent, while 10-year Treasurys, in contrast, yield just 2.3 percent, Fink adds.

Markets have been roiling lately amid a string of bad headlines, one after the other, regarding economic and debt issues in the U.S. and Europe.

One problem, Fink says, is that policymakers are showing an unwillingness to act when needed.

"The markets world-wide are unsettled because of inaction and really bad results from government," Fink says.

"We did not see leadership worldwide."

The recent feud among Democrats and Republicans over whether or not to lift the debt ceiling "truly showed how dysfunctional our government has become," Fink says.

"We lost one of the main foundations for investing—the certainty of good government."

The one thing certain in markets these days seems to be volatility, with many investors hoping for the market to bottom out and sail into calmer waters.

"Every bit of data that shows the economy not slipping into recession is going to be the basis for the market to begin to calm down in the weeks ahead," says Peter Cardillo, chief market economist at Rockwell Global Capital in New York, according to Reuters.

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BlackRock CEO and bond fan Laurence Fink says these days, he likes stocks over fixed-income, especially dividend-paying stocks. BlackRock manages $3.7 trillion in assets. You have companies trading with dividend yields above 5 percent. With interest rates as low as they...
BlackRock,CEO,Dividend,Stocks
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2011-21-17
Wednesday, 17 Aug 2011 08:21 AM
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