"I fail to see any advantages for dividends. The disadvantage is that they basically reduce the dry powder on an ongoing basis"

Perhaps there might be a case for Special Dividends - i.e not a commitment to pay them annually but in years when cash has built up significantly and share buybacks are not considered to be an efficient method?

I would be surprised to see dividends brought in relatively near term. I think Abel and co. would probably want to go as long as possible without initiating one in respect of Warren's views. Also, in today's letter, Warren didn't say that there wouldn't be growth, just its unlikely to be outsized, which to me implies, we're still unlikely to see dividends any time soon.

One thing I was wondering about was where dividends were paid as return of capital - does that still attract favourable tax status and if so is that for the investor or for the company paying them out?