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

Kudar A., SAYILGAN G.

MANAGERIAL AND DECISION ECONOMICS, vol.42, no.6, pp.1638-1642, 2021 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 42 Issue: 6
  • Publication Date: 2021
  • Doi Number: 10.1002/mde.3332
  • Journal Name: MANAGERIAL AND DECISION ECONOMICS
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, International Bibliography of Social Sciences, Periodicals Index Online, ABI/INFORM, Aerospace Database, Business Source Elite, Business Source Premier, Communication Abstracts, EconLit, Metadex, Psycinfo, Public Affairs Index, Civil Engineering Abstracts
  • Page Numbers: pp.1638-1642
  • Ankara University Affiliated: Yes

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.