Corporate Finance MBA Spring 2021 - Session 22: Dividend Policy - Beyond Inertia and Me-tooism

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 Slides: http://www.stern.nyu.edu/~adamodar/podcasts/cfspr21/session22slides.pdf Post class test: http://www.stern.nyu.edu/~adamodar/pdfiles/cfovhds/postclass/session22test.pdf Post class test solution: http://www.stern.nyu.edu/~adamodar/pdfiles/cfovhds/postclass/session22soln.pdf