Dividends and Share Repurchases

11 Pages Posted: 12 Feb 2013 Last revised: 26 May 2019

See all articles by Pablo Fernandez

Pablo Fernandez

University of Navarra - IESE Business School

Date Written: May 22, 2019

Abstract

The share value is the present value of the expected equity cash flows, and the two main components of equity cash flows are dividends and share repurchases.

We focus on the evolution of dividends and share repurchases on the U.S. stock market, although we also provide some data about other countries.

We show the evolution of the dividend yield of GE, Boeing and Coca-Cola.

We compare the evolution of the yield on 30-year Government bonds and the dividend yield in the United States. Both yields have fallen in the last 30 years.

We compare the evolution of the dividends per share of Coca-Cola and Pepsico with the earnings per share, and we calculate the expected dividend growth of Coca-Cola and Pepsico implicit in the market prices.

Keywords: value, price, dividends, Share Repurchases, equity cash flow

JEL Classification: G12, G31, M21

Suggested Citation

Fernandez, Pablo, Dividends and Share Repurchases (May 22, 2019). Available at SSRN: https://ssrn.com/abstract=2215739 or http://dx.doi.org/10.2139/ssrn.2215739

Pablo Fernandez (Contact Author)

University of Navarra - IESE Business School ( email )

Camino del Cerro del Aguila 3
28023 Madrid
Spain
+34 91 357 0809 (Phone)
+34 91 357 2913 (Fax)

HOME PAGE: http://web.iese.edu/PabloFernandez/

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