# Tag Info

## Hot answers tagged dividends

5 votes
Accepted

### Why do we use the letter $q$ for dividends?

It seems it didn't take long before the case of continuous dividends was considered in the literature. Robert Merton's 1973 paper "Theory of Rational Option Pricing" considers the case of ...
• 8,438
4 votes

### Why do we need an ex-dividend date?

I think you are really concerned about the record date. The ex-dividend date itself is set by the exchange. See for example Nasdaq. The firm issuing the stock manages the declaration date, record ...
• 8,143
2 votes

### how to calculate YTD return including the paid dividends

I've recently created a Python package called pyTAA as a side hobby to analyse low-frequency strategies. This is very much in alpha and can change at any point in time. To answer your question, I've ...
• 1,841
2 votes

### How to price lookback american option when its payment is distributed during its life

What happens to the "running fee" when the American option is exercised? Do you stop paying it? If you do then the standard Blck-Scholes equation applies (as modified for a look-back but you ...
2 votes

### Modeling the price of a stock based upon its dividend history

The Gordon Growth Model (GGM) is just a simple model. I don't imagine any serious user of the GGM believes in its assumptions or that calculating the true value of a stock is as simple as plugging in ...
• 8,438
1 vote
Accepted

### Modeling the price of a stock based upon its dividend history

Your question borders on opinion-based, but I'll try. Corporations' earnings and profits are volatile and unpredictable. Publicly traded corporations' common share prices are even more volatile, ...

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