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Should Berkshire Pay a Dividend?

Buffett authors weigh in on the possibility and wisdom of Berkshire Hathaway returning capital to shareholders.

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Jeremy Glaser: For Morningstar, I am Jeremy Glaser. I am here at the 2012 Value Investor Conference in Omaha, Neb., ahead of the Berkshire Hathaway Annual Meeting. We've talked to several Warren Buffett authors today, and one of the things on many people's minds was will Berkshire Hathaway ever pay a dividend. The firm has instituted share buybacks, but so far Warren Buffett seems very reluctant to actually write that check every quarter to shareholders. So, will he be issuing a dividend anytime soon?

Jeff Matthews: I don't think he is going to want to talk about a dividend. It sort of represents failure of the basic idea, the basic premise of Berkshire Hathaway which is that he can invest better than his shareholders, and that's true. So, I don't see any change until he is not in the picture.

Jeremy Glaser does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.