From Nasdaq: 2025-05-10 14:14:00

Berkshire Hathaway (NYSE: BRK.A) is a value stock with a diversified portfolio, controlled businesses, and no history of paying dividends. Warren Buffett prefers buybacks over dividends, and the new CEO, Greg Abel, may change that policy in the future. Berkshire’s Board authorized a share repurchase program in 2011, but hasn’t made any buybacks since 2024. The company’s capital allocation options include stock buybacks, which increase earnings per share over time. Berkshire’s size and success with controlled assets suggest it may introduce dividends in the future under Abel’s leadership.

As Berkshire evolves into a conglomerate, its focus on controlled businesses could lead to a shift in its capital return program. While Berkshire has the cash to support a dividend, Abel’s strategy may prioritize growing controlled businesses over stock purchases. Berkshire’s market cap is $1.11 trillion, limiting the impact of stock purchases on its overall value. If Berkshire paid a dividend, it could attract investors looking for passive income from growing businesses. The Motley Fool Stock Advisor team recommends 10 other stocks over Berkshire Hathaway for potential higher returns.

Daniel Foelber has no position in any stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Visa. The views expressed do not necessarily reflect those of Nasdaq, Inc.



Read more at Nasdaq: Berkshire Hathaway Never Paid Dividends Under Warren Buffett. Here’s Why That Could Change With Greg Abel as CEO