Berkshire Hathaway to Initiate Dividend Under New CEO Greg Abel
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Leadership Transition: Warren Buffett retired on December 31, 2025, handing over daily operations to Greg Abel, with 2026 expected to be a pivotal year for Abel's leadership.
- Dividend Initiation Anticipated: Berkshire Hathaway, which has only paid one dividend during Buffett's tenure, is predicted to initiate a dividend by the end of 2026, responding to investor demands for cash returns and marking a significant strategic shift.
- Increased Tech Investments: In 2026, Berkshire is likely to ramp up investments in technology companies, particularly as the tech sector comprises 35% of the S&P 500 in the AI era, which could enhance the company's potential returns.
- Cash Reserve Utilization: With a record cash reserve of $381.7 billion by Q3, Berkshire is generating interest income from T-bills, and may optimize capital allocation through dividends or reinvestments in the future.
Analyst Views on BRK.A
Wall Street analysts forecast BRK.A stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BRK.A is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 755400.000
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Current: 755400.000
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About BRK.A
Berkshire Hathaway Inc. and its subsidiaries are engaged in diverse business activities, including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, services and retailing. Its segments include Insurance, Burlington Northern Santa Fe (BNSF), Berkshire Hathaway Energy (BHE), Pilot Travel Centers (Pilot), Manufacturing, McLane Company (McLane), and Service and retailing. The Insurance segment includes GEICO, Berkshire Hathaway Primary Group, and Berkshire Hathaway Reinsurance Group. The BNSF segment includes the operation of railroad systems in North America. BHE segment offers regulated electric and gas utilities and real estate brokerage activities. Manufacturing segment manufacturers various products, such as industrial, consumer and building products. The McLane segment is engaged in wholesale distribution of groceries and non-food items. The Pilot segment is an operator of travel centers in North America and a marketer of wholesale fuel.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
