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They don't (currently) issue dividends because the expectation is they will buy back their stock or will issue dividends in the future. If a company never issu
by greenleafjacob 7y ago
They don't (currently) issue dividends because the expectation is they will buy back their stock or will issue dividends in the future.
If a company never issued dividends and never bought back their own stock, then there would be no reason for investors to buy stocks in the first place. Most investors don't invest out of the goodness of their hearts, they invest to get a return on capital.
- K2L8M11N2 7y agoBerkshire Hathaway doesn’t pay dividends and most probably never will.
- gridlockd 7y agoYes, but Berkshire is a holding company, made up of a lot of companies that do pay dividends, are expected to eventually pay dividends, issue buybacks, or are themselves holding companies.
- mrep 7y agoBut they have bought their own stock back and they are even considering a whopping $100 billion dollar buyback [0]. [0]: https://qz.com/1611997/warren-buffett-hints-on-timing-of-big-berkshire-hathaway-buyback/ https://qz.com/1611997/warren-buffett-hints-on-timing-of-big...