problem. For this, we develop a new discrete dividend model that allows for the possibility of early announcement and ensures … that the drop of the stock price at the ex-dividend date equals the dividend. The resulting portfolio problem can be solved …

dividend yield is typically viewed as a reflection of either changing risk, related to the business cycle, or irrational … mispricing. Extending the work on asset allocation and dividend yield by Kandel and Stambaugh (1996) to accommodate variation in …