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

Alibey Kudar and Güven Sayılgan

Managerial and Decision Economics, 2021, vol. 42, issue 6, 1638-1642

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.

Date: 2021
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https://doi.org/10.1002/mde.3332

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Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:42:y:2021:i:6:p:1638-1642

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