Why Doesn't Berkshire Hathaway Pay a Dividend?
If you're thinking of investing in Warren Buffett's company Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), that's great, as it's a terrific business. If you're looking for dividend income from the stock, though, I have some bad news for you: Berkshire Hathaway doesn't pay a dividend. However, that might change one of these days.Warren Buffett. Image source: The Motley Fool.Generally speaking, companies tend to start paying regular dividends to shareholders when they have more cash than they can put to productive use. Companies often want to use their earnings to drive more growth -- by hiring more workers, buying more advertising, building more factories, and so on. They might also use cash to pay down debt, repurchase shares, or reward staffers, among other options.Continue reading
If you're thinking of investing in Warren Buffett's company Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), that's great, as it's a terrific business. If you're looking for dividend income from the stock, though, I have some bad news for you: Berkshire Hathaway doesn't pay a dividend. However, that might change one of these days.
Warren Buffett. Image source: The Motley Fool.
Generally speaking, companies tend to start paying regular dividends to shareholders when they have more cash than they can put to productive use. Companies often want to use their earnings to drive more growth -- by hiring more workers, buying more advertising, building more factories, and so on. They might also use cash to pay down debt, repurchase shares, or reward staffers, among other options.
