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A new sustainable dividend policy and valuation model: Decreasing growth rate model

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  • Alibey Kudar
  • Güven Sayılgan

Abstract

In this study, we offer an alternative growth rate model for a company to be able to sustain its dividend policy. In the model we propose, there is an increase in the periodic amount of dividends every period on an equal basis, but the growth rate of dividends decreases every period. That's why we named the model “Decreasing Growth Rate Model”. The model we proposed is explained in a simple hypothetical example.

Suggested Citation

  • Alibey Kudar & Güven Sayılgan, 2021. "A new sustainable dividend policy and valuation model: Decreasing growth rate model," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(6), pages 1638-1642, September.
    • Handle: RePEc:wly:mgtdec:v:42:y:2021:i:6:p:1638-1642
    DOI: 10.1002/mde.3332
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