Dividend Stocks Usually Beat Non-Payers. Berkshire Hathaway Is the Exception.

While dividend stocks have historically outperformed non-payers with 9.2% average annual returns versus 4.2%, Berkshire Hathaway stands as a notable exception, delivering 19.9% average annual returns without paying dividends. Warren Buffett's disciplined capital allocation strategy and focus on high-return investments allowed Berkshire to outperform both dividend stocks and the S&P 500. Under new CEO Greg Abel, the company is beginning to deploy its massive $365.5 billion cash position through stock buybacks, acquisitions, and portfolio investments.