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International evidence on the payout ratio, earnings, dividends, and returns

ap Gwilym, Owain, Seaton, James, Suddason, Karina and Thomas, Stephen (2006) International evidence on the payout ratio, earnings, dividends, and returns Financial Analysts Journal, 62, (1), pp. 36-53. (doi:10.2469/faj.v62.n1.4057).

Record type: Article


Recent evidence for the U.S. market has shown that, contrary to popular wisdom, the greater the proportion of earnings paid out as dividends, the greater the subsequent real earnings growth. This study extends previous work by examining whether a similar relationship exists in 11 international markets and by considering the role the payout ratio plays in explaining future real dividend growth and returns. Higher payout ratios do indeed lead to higher real earnings growth—but not to higher real dividend growth. This information has limited use, however, for predicting future returns.

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Published date: 2006
Keywords: portfolio management, asset allocation, equity investments, fundamental analysis and valuation models


Local EPrints ID: 37357
ISSN: 0015-198X
PURE UUID: fd0b8ab2-5071-4cd0-9197-d7b3f73ebb70

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Date deposited: 20 Jun 2006
Last modified: 17 Jul 2017 15:42

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Author: Owain ap Gwilym
Author: James Seaton
Author: Karina Suddason
Author: Stephen Thomas

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