Preference for dividends and stock returns around the world
Allaudeen Hameed (National University of Singapore), et al.
November 2022
We find strong international evidence favoring dividend payout as a salient stock characteristic affecting expected stock returns. We find that dividend-paying stocks outperform non-payers by 0.54% per month in 44 countries, adjusting for exposures to global and regional risk factors. The majority of the dividend premium is earned during the ex-dividend months. The dividend premium is higher following bad market states and co-varies across countries. Dividend payers’ outperformance is stronger in countries with poor governance but is unrelated to local tax rates on dividends. The evidence emphasizes the importance of (time-varying) preference for dividends in driving average stock returns and global return comovement.
Daily Archives: December 9, 2022
Macro Briefing: 9 December 2022
* Inverted yield curves signal high odds of US recession
* US mortgage rates slide for a fourth week
* Turkey blocking halting flow of 600,000 bpd of oil
* China appears to be under-reporting Covid cases and deaths
* China annual inflation drops to 8-month low in November
* US regulators sue to block Microsoft’s acquisition of Activision Blizzard
* Meta battles US government over $300 million virtual-reality acquisition
* UK will face some of the worst strikes in at least a decade
* US jobless claims rise vs. year-ago level for first time since March 2021:
