Berkshire Hathaway Has Paid Exactly 1 Dividend Since 1965. Here's Where the Cash Goes Instead.
Key PointsBerkshire last issued a dividend in 1967, deciding since then to focus mainly on reinvesting its earnings.
Warren Buffett controlled Berkshire Hathaway for 60 years, overseeing remarkable growth with a 19.9% average annual return. Yet, during this time, Berkshire only paid one dividend: $0.10 per share in 1967. This cautious stance on dividends has been a key factor in Berkshire's success. Instead of distributing cash to shareholders, the company has focused on reinvesting earnings and gains back into new acquisitions and investments.
In recent years, Berkshire has increased its equity stake in Alphabet, with a $17 billion boost in Q2. The company has also resumed share buybacks, repurchasing $4.5 billion in Q2 alone. While Berkshire is not known for its dividends, the company's cash reserves of over $350 billion in cash and cash equivalents suggest that it may continue to focus on deploying capital into new ventures.
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