Dividend Stocks Usually Beat Non-Payers. Berkshire Hathaway Is the Exception.
Berkshire Hathaway has been an outlier.
Overview
Dividend stocks have absolutely crushed non-payers over the last 50+ years, delivering an average annual total return of 9.2% compared to 4.2%, according to data from Ned Davis Research and Hartford Funds. However, there are some notable outliers, including Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB), which has notoriously avoided paying dividends. It has delivered an average annual return of 19.9% since Warren Buffett took it over in 1965.
Here's a look at what has made Berkshire Hathaway such an outlier.
Image source: The Motley Fool.
Details
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.