Meenakshi Joshi, a certified financial planner in India, was deciding which stocks to recommend to her risk-averse, income-seeking retired clients. For these types of portfolios she often sought stocks that paid regular dividends. Then, in April 2023, the state government of Gujarat officially mandated the payment of dividends—the first such mandate in India—and seven state-owned enterprises (SOEs) became ideal candidates for dividend investing. The .....more

Teaching note for product W42610.

Berkshire Hathaway Inc., a goliath enterprise that had grown tremendously over a half century, had never paid a dividend. The chairman of Berkshire Hathaway inc., advocated an investment policy of reinvesting in existing assets, acquiring diversified assets, and buying back shares in the company, but never paying a dividend. However, in 2017, excess cash and short-term reserves were earning a yield value that was less than the inflation rate, effectively .....more

Teaching note for product 9B19N007.