Business, Management and Accounting
6 years ago

Implied dividend growth predicts stock returns, challenging traditional value investing strategies.

1 view
The Valuation of Future Dividends in Cross-sectional Models of Stock Returns
Jac Kragt

Paper Summary

The study looked at how future dividends affect stock returns. They found that when future dividends are valued highly compared to actual dividends, stocks initially perform well but then drop in value, especially when dividend yields are low. This challenges traditional ideas about stock value and sheds light on why some stocks are more profitable than others.

Related papers

Economics, Econometrics and Finance
8 years ago

High Dividend Yield Linked to Lower Dividend Growth in New Study.

Asset Pricing
Credit Expansion
Macroeconomic Analysis
Economics, Econometrics and Finance
8 years ago

Emerging markets' stock returns predicted by market-to-book ratio.

Asset Pricing
Corporate Governance
Value-based Management
Business, Management and Accounting
4 years ago

High dividend stocks outperform in CEE stock market, boosting investor returns.

Corporate Governance
Asset Pricing
Credit Expansion