Dividend Pricing Models and REITs

  title={Dividend Pricing Models and REITs},
  author={Jarl G. Kallberg and Hong-yu Liu and Anand Srinivasan},
Dividend pricing/present value models relate current stock prices to expectations of future dividends. In this study we apply the West and Campbell–Shiller tests of the dividend pricing relation to an index of real estate investment trusts (REITs). REITs provide a unique test of these models since, during our study period, REITs were mandated to pay out at least 95% of taxable income as dividends. While our results complement previous research which finds that the dividend pricing model cannot… CONTINUE READING


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