RT Journal Article
SR Electronic
T1 Practical Applications of The Stock as a Portfolio of Durations: <em>Solving Black’s Dividend Puzzle Using Black’s Criteria</em>
JF Practical Applications
FD Institutional Investor Journals
SP 1
OP 3
DO 10.3905/pa.2016.3.3.139
VO 3
IS 3
A1 Oscar Varela
A1 Wendy Connett
YR 2016
UL https://pm-research.com/content/3/3/1.6.abstract
AB The Stock as a Portfolio of Durations: Solving Black’s Dividend Puzzle Using Black’s Criteria Oscar Varela Should a firm should pay dividends and does paying them—or not—have any relevance to its stock value? In an interview with Institutional Investor Journals , Oscar Varela explains how dividend policy impacts a stock’s riskiness when its duration is taken into consideration.His research was inspired by conflicting statements by Fischer Black , first in a 1976 article and later in a 1995 book. Varela explains, “It struck me that the same Black who claimed dividends to be puzzling had nevertheless, in his book on general equilibrium, downgraded the idea of puzzles.”