Tim Meador

The Chubb Corporation: Dividend Stock Analysis

"Berkshire Hathaway (BRK.B) is also a competitor to Chubb(CB), although it trades at a P/E of 29, and does not pay a dividend. The company does spend a lot of its cash flow on stock buybacks, which could prove beneficial in the long run since it could provide above average dividend growth over time for the same effort."

According to information on Yahoo Finance, Berkshire Hathaway has not bought back any stock in the last three years. This is what most companies would do in lieu of paying a dividend, but Buffett has so far believed better returns can be found elsewhere.