Dividends, earnings, the payout ratio and returns: a century of evidence from the US and UK


ap Gwilym, Owain, Seaton, James and Thomas, Stephen (2004) Dividends, earnings, the payout ratio and returns: a century of evidence from the US and UK. Southampton, UK, University of Southampton, 37pp. (Discussion Papers in Accounting & Finance, (AF04-14) ).

Download

[img]
Preview
PDF
Download (236Kb)

Description/Abstract

This paper investigates the relationship between real earnings growth, real dividend growth, the dividend payout ratio and real stock returns in the US and UK between 1900-2001. We find a positive relationship in the UK between the payout ratio and subsequent real earnings growth contrary to conventional theory, though consistent with the US evidence presented by Arnott and Asness (2003). By contrast, a negative relationship was observed between the payout ratio and real dividend growth in the UK, although US results offered only limited support for this finding. Overall, we find the payout ratio is negatively related to real returns in the UK.

Item Type: Monograph (Discussion Paper)
Additional Information: ISSN 1356-3548
Subjects: H Social Sciences > HG Finance
H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: University Structure - Pre August 2011 > School of Management
ePrint ID: 36135
Date Deposited: 24 May 2006
Last Modified: 27 Mar 2014 18:22
URI: http://eprints.soton.ac.uk/id/eprint/36135

Actions (login required)

View Item View Item

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics