Changes in Both Dividends Per Share and Important Characteristics of Dividend Paying Firms Over Time

Abstract

The market break of 2000 appears to have changed how companies perceive dividends. This study shows dividends appear to be more important during the post-2000 period. While some financial variables had significant relationships with dividends per share (DPS) over both pre-2000 and post-2000 periods, others such as current ratio, beta risk measure, and net profit had significant relationships with DPS in only one period. This knowledge may help investors improve decisions regarding dividend-paying firms.