The Premium That Set the Dividend: Baker and Wurgler’s 2004 Catering Theory, the Payers Who Vanished and Came Back in Part, and Why the Long-Term Equity Investor Must Ask Whether a Payout Is Policy or Fashion

The Premium That Set the Dividend: a gauge whose needle swings between nonpayers priced richer and payers priced richer, the dividend premium

Written by

Manish Goel, FCA

Behavioural Finance, Premium

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The Premium That Set the Dividend: Baker and Wurgler’s 2004 Catering Theory, the Payers Who Vanished and Came Back in Part, and Why the Long-Term Equity Investor Must Ask Whether a Payout Is Policy or Fashion

More posts

The Half-Life of Facts: Burton and Kebler’s 1960 Borrowed Metaphor, Poynard’s Forty-Five-Year Measurement of Clinical Truth, and Why the Long-Term Equity Investor Dates Every Input to a Thesis

Hanlon’s Razor: Bloch’s 1980 Printing of an Older Warning, the Arithmetic of Intent and Error, and Why the Long-Term Equity Investor Writes the Tripwire Before the Surprise

Occam’s Razor: Ockham’s Fourteenth-Century Rule of Parsimony, the Bayesian and Predictive Case for It, and Why the Long-Term Equity Investor Counts the Assumptions in a Thesis

The Stockdale Paradox: Collins’s 2001 Name for Faith in the End and Honesty About the Present, and Why the Long-Term Equity Investor Needs Both Without a Date Attached