We compare the stock return forecasting performance of alternative payout yields. The net payout yield produces more accurate forecasts relative to alternatives, including the traditional dividend yield. This remains true even after excluding several years during the Great Depression when...

Corporate dividends cluster on increments of 5, like 25, 50, and 75. Firms that pay dividends on these `prominent' amounts have lower operating performance and five-factor alphas 60 b.p. per year lower. Consistent with agency frictions that reduce managerial effort and lead to lazy decisions, we...