Dividends

Dividends
April 2026

Dividend Capture Returns and Their Drivers: A Bayesian Analysis of Large-Cap Stocks Over 35 Years

Kaden Ma

Research

18 Pages

This paper examines the profitability of dividend capture from 1990–2025 using Bayesian linear regression, focusing more on retail investors.

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Dividends
March 2026

How Income Investors Can Avoid Dividend Traps in 2026

Morningstar

Dan Lefkovitz

Research

7 Pages

With the Morningstar US Market Index‘s dividend yield below 1.2% (and ex-US at 2.6%), Morningstar looks at how to avoid dividend traps.

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Dividends
March 2026

The Impact of Early Option Exercise on Ex-Dividend Stock Returns

Research

47 Pages

The authors revisit the well-documented stock return anomaly around ex-days and establish a novel link to early exercise of equity options.

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Dividends
March 2026

Data Update 8 for 2026: Time for Harvesting – Dividends and Buybacks

Aswath Damodaran

Research

9 Pages

Professor Damodaran looks at the decision by businesses on how much cash to return to their owners, and in what form (dividends or buybacks), and how that decision played out globally in 2025.

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Dividends
December 2025

Why dividend growth investing has staying power

T. Rowe Price

Tom Huber, Tamzin Manning

Research

6 Pages

T. Rowe Price explains why sticking with a dividend growth strategy can provide useful diversification while creating an opportunity to compound returns over the long term.

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Portfolio Management
March 2025

Dividends and Buybacks – Inertia and Me-tooism!

Aswath Damodaran

Research

23 Pages

Professor Aswath Damodaran provides a framework for thinking about how much cash a business can return to its owners, and then argues that, in reality, this decision is affected by inertia and me-tooism.

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Portfolio Management
October 2024

Buybacks for US, Dividends for EU

Verdad

Chris Satterthwaite

Research

4 Pages

Verdad’s deep dive on shareholder yield finds it “does a relatively good job of spreading returns in a linear fashion, both in the US and abroad.”

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Markets
December 2023

Searching for Great Dividend Funds

Morningstar

Todd Trubey, Daniel Sotiroff

Research

19 Pages

Morningstar analyzes various dividend strategies: dividend income, dividend growth, and dividend growth & income. Then they share a “how to” guide with what to focus on when trying to identify dividend funds that will perform well over the long run.

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Markets
August 2023

The Difference of Dividends

WisdomTree

Alejandro Saltiel, Matt Wagner

Research

6 Pages

WisdomTree analyzes how dividends have driven long run equity returns and how its dividend indexes compare with the S&P 500.

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Portfolio Management
March 2019

Reconsidering Returns

Samuel Hartzmark, David Solomon

Research

66 Pages

Investors' perception of performance is biased because the relevant measure, returns, is rarely displayed. Major indices ignore dividends, inducing mechanical underperformance on ex-dividend days.

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Portfolio Management
October 2017

Is the Dividend Trade Cracking?

AllianceBernstein

Article

1 Pages

AllianceBernstein examines whether crowded dividend strategies had become overstretched in 2017 as investors chased yield despite weakening fundamentals.

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Portfolio Management
November 2016

The Dividend Disconnect

Samuel Hartzmark, David Solomon

Research

56 Pages

Many individual investors, mutual funds and institutions trade as if dividends and capital gains are disconnected attributes, not fully appreciating that dividends result in price decreases.

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Portfolio Management
October 2014

Juicing the Dividend Yield: Mutual Funds and the Demand for Dividends

Samuel Hartzmark

Research

49 Pages

This paper presents evidence consistent with a subset of mutual funds engaging in significant trading to artificially increase their dividend yields, by buying stocks shortly before ex-dividend dates and selling them afterwards.

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Portfolio Management
October 2012

The Dividend Month Premium

Samuel Hartzmark, David Solomon

Research

55 Pages

We document an asset-pricing anomaly whereby companies have positive abnormal returns in months when a dividend is predicted. The premium is consistent with price pressure from dividend-seeking investors.

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