Berkshire Hathaway pays no dividend. However, yield-bearing companies still represent a major chunk of Buffett's portfolio. Aside from being leaders in their respective fields, Buffett positions including Coca-Cola
As we saw last year, distributions have become essential to navigating today's volatile economic climate. The constant reminders of economic turmoil facing both the U.S. and abroad can lead to unexpected shake ups and gut wrenching dips.
Consistent dividends can help alleviate some of this volatility, providing conservative investors with some comfort and confidence.
Having a large number of quality companies sharing the fruits of the success regularly with their investors also lead to a healthier and functional market, In China, despite the booming economy, the market is still at its doldrums because very few (less than 5%) of the companies pay any dividends at all. There is really no point in investing in such companies because whatever fruits of the success of these companies will eventually be swindled away or gambled on some foolish business expansions, if management consciously overlook investor interest over a long period of time.
My dividends for Jan 2011