This paper studies why investors buy dividend-paying assets and how they time their consumption accordingly. We combine … financial behavior. We find that private consumption is excessively sensitive to dividend income. Investors across wealth …, income, and age distributions increase spending precisely around days of dividend receipt. Importantly, the consumption …

We examine stock prices and the number of stocks traded around ex-dividend dates of German stocks with tax …-free dividend. Tax-free dividends are temporarily tax-exempt, as they reduce the initial purchasing price of a stock. With our … empirical results indicate that ex-date prices decline, on average, by the amount of the dividend. We do not find a significant …