This paper documents that the increase in public debt can lead to higher dividend payout to shareholders, which … higher public debt-to-GDP ratio can predict both higher dividend growth and higher stock returns, and the predicted changes … common component among stock returns and dividend growth. We argue that i) public debt can drive the co-movement among …

timely measures of uncertainty and expected growth across horizons. Asset prices, such as dividend futures and index options … by using new data on the prices of options on index-level dividends, from which we can compute implied dividend … about dividends. We construct a term structure of implied dividend volatilities that characterizes how uncertainty varies …