RT Journal Article
SR Electronic
T1 The Changing Nature of Dividend Policy and Its Implications for the Investor
JF The Journal of Investing
FD Institutional Investor Journals
SP 21
OP 28
DO 10.3905/JOI.2008.17.4.021
VO 17
IS 4
A1 Stanley B Block
YR 2008
UL https://pm-research.com/content/17/4/21.abstract
AB Dividend yields are at an all-time low in the current decade, and the dividend payout ratio is down to 30%. This article examines the reasons why these changes have taken place, whether they are likely to continue in the future, and the implications for the investor. Empirical investigation of high-yield stock performance after the passage of the 2003 Tax Act indicates, at best, a neutral performance. The author’s survey of 1,207 practicing financial analysts portends a continuation of less emphasis on dividend payout and a great emphasis on stock buybacks and internal reinvestment of profits. The total return concept will continue to take on greater meaning for the investor.TOPICS: Legal/regulatory/public policy, portfolio construction, portfolio management/multi-asset allocation