tshk1221

Why You Don't Want Berkshire to Pay Dividends

It is too early to expect any dividend from BRK since BRK's history is very short compared to other companies with consistent dividend-paying history that have more than 100 years of surviving history. For example, CL has existed for 200 years. PG, 170 years. HNZ, 140 years. KMB, 130 years and so on.

BRK must survive another 40 - 50 years from now to show to the market that it has a proven track record of surviving history. From my point of view, BRK is not that different from MSFT in terms of its speed of market capitalization during a very short period of time and relatively short business history.

However, MSFT is definitely a better choice for us because of its dividend yield of 2.6% and its firm standing as industry leader even if we have $10,000,000 to invest with.

Why You Don't Want Berkshire to Pay Dividends

The problem of BRK's no dividend policy seems to be this:

I cannot hold BRK forever. I MUST sell BRK someday to enjoy the economic benefits (cash).

However, I can hold KO, PG, JNJ, KFT, HNZ, KMB, CL and WMT including other quality-dividend paying companies forever because of the continuous, increasing streams of economic benefits (dividends) coming to me, and I don't need to sell these companies to reap and enjoy the economic benefits.

Berkshire Hathaway Stock Holdings and Investment Ideas

I think it will be better for small investors to choose some of the right ones among the stocks owned by BRK. There are a lot of companies in the list that we do not know well about or that we don't need to own at all. I would go with the following only: AXP, GE, WFC, PG, JNJ, KO, GSK, KFT and WMT

Dividend Investing vs. Trading

This is a great article that illustrates one of the best ways for small investors to accumulate wealth over long-term through dividend reinvestment.

As I invested a litttle in the market, I came up with my own conclusion that quality dividend, rather than sell-buyer-agreed market cap, is the true reflection of intrinsic value of a company. Through dividend reinvestment, we get a portion of intrinsic value realized from a company, reinvest it back to the company and get it back again. This continuous circulation of intrinsic value between an investor and a company appears to create something more than simple compounding.

After a few mistakes, I decided to stick to quality-dividend company and divident reinvestment.

5 Dividend Stocks for a Bear Market

Can you analyse KMB, HNZ, VZ, GSK and KFT, too for us?

Dividends Outlook for 2009

I just want stock market to stay flat with Dow at 7,200 - 8,000 level for the next 10 years so I can get more, more and more free shares through compounding quarterly dividend payments and reinvested shares.

Blue Chip Dividend Stocks: Five I'm Watching

Of course, it is important to measure the percentage drop of their face stock values since the crisis to check affordability of these great companies. But, due to their steep increase in their market values for the last 10 years, P/Es of, for example, KO and PG are not yet in the range of good buy. KO's net cap rate is still at around 5.6%, and that of PG is 5.9%. With this market volatility in mind, some investors might feel safer and better off with sitting with a bank CD offering 3.5% - 4%. And there are not a lot of strong growth potential for the next 5 years or so in their market values. In addition, buying defensive stocks at this "defensive" period will result in higher, double-jammed buying costs. There are other blue chip companies such as AA, DD, GE and CVX that reached net cap rates ranging from 13% to 22%. These blue chip companies got a lot cheaper than KO and PG and are very likely to show strong rebound and growth in their market values after 5 years or. Dividend-wise, AA, GE and DD excel KO and PG. Which ones to choose? It is up to investors.