What If Berkshire Hathaway Paid a Dividend?

Posted by D4L | Saturday, March 03, 2012 | | 0 comments »

An interesting side effect of investors' recent love affair with dividend stocks is that one of my very favorite stocks, Berkshire Hathaway (NYSE: BRK-A ) (NYSE: BRK-B ) , leaves many dividend-chasers cold because Warren Buffett & Co. hang onto all of the company's cash. As a fan of dividends myself, Berkshire is one of the few companies I'm willing to give a pass when it comes to payout. Why?

Simple, because I believe that Warren Buffett can find great opportunities -- in many cases, opportunities that I wouldn't have access to, like a special Goldman Sachs preferred stock -- to reinvest the money. And it's not like Buffett is against dividends -- Berkshire's public-stock portfolio is top-heavy with dividend payers like Coca-Cola, IBM, and Wells Fargo. I don't think that I'm going out on a limb if I say that it's unlikely we'll see a Berkshire dividend as long as Buffett is running the show.

Source: Motley Fool

Related Articles:
- Four Dividend Stocks Stepping Up In The Downturn
- Increasing Dividend Yield Part VI: Time
- Increasing Dividend Yield Part V: MLPs
- Increasing Dividend Yield Part IV: Bonds
- Increasing Dividend Yield Part III: Preferred Stock

Click here to have future posts delivered to you for free!

_____________________________________________________________________

0 comments

Post a Comment

~

Latest From Dividend Growth Stocks

Popular Posts Last 30 Days