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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
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    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. Golez, Benjamin & Koudijs, Peter, 2018. "Four centuries of return predictability," Journal of Financial Economics, Elsevier, vol. 127(2), pages 248-263.
    4. Brandon Julio & David L. Ikenberry, 2004. "Reappearing Dividends," Journal of Applied Corporate Finance, Morgan Stanley, vol. 16(4), pages 89-100.
    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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