Warren Buffett has frequently expressed that the payment or non-payment of dividends should depend strictly on how efficiently a company can allocate its retained earnings. According to his investment philosophy, if a corporation can reinvest its earnings internally at high rates of return to generate substantial growth, retaining those funds is far more advantageous for shareholders than distributing them as taxable dividends. Conversely, if a business lacks high-return internal projects, it should return capital to its shareholders through dividends or share buybacks. At Berkshire Hathaway, he historically preferred retaining earnings to compound long-term capital growth, famously noting that Berkshire itself has never paid a regular cash dividend since he took control, choosing instead to deploy capital where it creates maximum intrinsic value.