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Valuation, Dividend Yield, and the Expenditure Savings Multiple

Author

Listed:
  • Alcide Bennet

    (East Texas Baptist)

  • Brandon Renfro

    (East Texas Baptist University)

Abstract

In this paper we examine the relationship between valuation, dividend yield, and the ability to sustain a retirement spending goal through dividends. We call our measure the expenditure savings multiple. Our measure helps frame the question as to whether a retirement spending goal can be satisfied through dividends alone.

Suggested Citation

  • Alcide Bennet & Brandon Renfro, 2020. "Valuation, Dividend Yield, and the Expenditure Savings Multiple," Economics Bulletin, AccessEcon, vol. 40(1), pages 96-100.
    • Handle: RePEc:ebl:ecbull:eb-19-01060
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2020/Volume40/EB-20-V40-I1-P9.pdf
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    References listed on IDEAS

    as
    1. John Y. Campbell & Robert J. Shiller, 1988. "Stock Prices, Earnings and Expected Dividends," Cowles Foundation Discussion Papers 858, Cowles Foundation for Research in Economics, Yale University.
    2. Jensen, Michael C, 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers," American Economic Review, American Economic Association, vol. 76(2), pages 323-329, May.
    3. repec:bla:jfinan:v:43:y:1988:i:3:p:661-76 is not listed on IDEAS
    4. Brandon Julio & David L. Ikenberry, 2004. "Reappearing Dividends," Journal of Applied Corporate Finance, Morgan Stanley, vol. 16(4), pages 89-100.
    5. Golez, Benjamin & Koudijs, Peter, 2018. "Four centuries of return predictability," Journal of Financial Economics, Elsevier, vol. 127(2), pages 248-263.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Valuation; Dividend Yield; Retirement;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets

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