Enter multiple symbols separated by commas

Back to Basics for Investors: Blackrock's Kapito

It’s back to basics—companies that offer strong dividends and good products—for investing, Robert Kapito, president of Blackrock , told CNBC Friday.

“You have to get into the company,” he said during a discussion about the upcoming IPOs for HCA and GM, “and look at the products. You have to understand what management is doing and believe what management is doing.”

Kapito said he’s a “non-deal junkie,” meaning he’s less concerned with who is underwriting an IPOdeal, than what the company being offered provides to the investor. Among those investors who depend on Blackrock, said Kapito, are firefighters, police officers and teachers.

“It comes down to price,” said Kapito. “Our clients want performance: It’s not a story [they want].”

Kapito said one company that performs is DuPont , which is paying a 4.4 percent dividend, higher than Treasurys, now at 3.25 percent.

“This is a company that has paid a dividend for 480 consecutive quarters,” he added. “The companyis in a good space: They are in areas that feed the world, and we all know that there isn’t enough food in the world.”

Kapito also said, when dealing with LBOs, he wants to sit at the table with the private equity company involved. He added that he would like to see buyers get the covenants, instead of banks getting them all, as they do now.


  • Jamie Dimon

    JPMorgan Chase's officials haven't done enough to show what the company is doing right, leading to shareholders disapproval.

  • Attorney General Loretta Lynch enters a packed news conference at the U.S. Attorneys Office of the Eastern District of New York following the early morning arrest of world soccer figures, including officials of FIFA, for racketeering, bribery, money laundering and fraud on May 27, 2015 in New York City.

    U.S. legal authorities said they have the jurisdiction to go after some FIFA officials for corruption charges.

  • Jeffrey Lacker, president of the Federal Reserve Bank of Richmond.

    Policymakers must ensure that creditors must be willing to let firms fail in order to restore discipline, a top Fed official said.