Session 22: The Dividend Principle - First Steps

We spent this session first talking about the characteristics of dividends, i.e., that they are sticky and follow earnings as well as reasons for the shift towards buybacks in recent decades, We ended the class by looking at two bad reasons for paying dividends (that they are more certain, that you had a good year). As you wrap your head around buybacks and what they can and cannot do to companies, you may find the following post that I have on the topic useful (or not):
http://aswathdamodaran.blogspot.com/2019/02/january-2019-data-update-8-dividends.html
In the next class, we will talk about three good reasons for paying dividends as well as a way of measuring how much cash can be returned (FCFE).
Slides: https://www.stern.nyu.edu/~adamodar/podcasts/cfspr22/session22slides.pdf
Post class test: https://www.stern.nyu.edu/~adamodar/pdfiles/cfovhds/postclass/session22test.pdf
Post class test solution: https://www.stern.nyu.edu/~adamodar/pdfiles/cfovhds/postclass/session22soln.pdf

Видео Session 22: The Dividend Principle - First Steps канала Aswath Damodaran