Dividend Policy Revisited
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Author
Weigand, Robert
Baker, H. Kent
Publisher
Washburn University. School of Business
Sponsor
Kaw Valley Bank
Issue Date
March 2014
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Abstract
This paper provides a review and synthesis of the literature and chronicles changing perspectives on corporate dividend policy. The importance of dividends as part of an investor's total return has declined over time while the role of share repurchases has increased. No consensus exists on a single explanation for paying dividends or repurchasing shares. Existing models and theories of dividend policy may be too simplistic, given that multiple factors determine firms; dividend decisions. A need exists to develop a new paradigm to deal with the dividend puzzle.