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).

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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:
ePrint ID: 36135
Date :
Date Event
2004Published
Date Deposited: 24 May 2006
Last Modified: 16 Apr 2017 22:07
Further Information:Google Scholar
URI: http://eprints.soton.ac.uk/id/eprint/36135

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