For decades, many investors have called on Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) to pay a dividend, but Warren Buffett has refused to authorize one.

Why doesn't Berkshire pay a dividend? Will it ever?

The only time Berkshire ever paid a dividend was in 1967. The payout was $0.10 per share. At the time, Berkshire had only one share class. "It was a terrible mistake," Buffet later conceded. That's because if Berkshire had reinvested the capital instead of paying it out, it would be worth significantly more today. Since Buffett took over the company, shares have risen in value by an average of nearly 20% per year, roughly double the rate of the S 500.

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Source Fool.com