BlackRock Chief Executive Laurence Fink has warned top U.S. companies not to emphasize dividends or share buybacks if they come at the expense of future growth.
Many top corporations have faced pressure from Wall Street analysts, activist investors and others to increase their dividends, buy back shares or take other steps to return capital to investors sooner rather than later.
Fink, in a March 21 letter to the leaders of companies in the S&P 500, acknowledged the pressure for near-term performance but reminded companies that they must focus on the longer term. With $4.3 trillion under management at Dec. 31, BlackRock of New York wields much influence over the boards of top corporations.
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