Buffett Outlining Dividend Plan May Ease Successor’s Path

Warren Buffett once said that shunning dividends in his early years running Berkshire Hathaway Inc. allowed him to refocus the company on better businesses, much as a person would overcome “a misspent youth.”

The 82-year-old billionaire is now focused on his legacy as he prepares the company he’s overseen for almost five decades for new management. Using his annual letter tomorrow to outline a dividend strategy could help explain to shareholders how the company’s next leaders should approach the challenge of allocating profits.