The decision to pay out earnings or retain dividends has been a subject of debate for many scholars. This research paper tests the applicability of constant dividend model from companies listed at the Nairobi stock exchange. Data was collected from annual reports and share price schedules obtained from Nairobi stock exchange and Capital market Authority for a sample of 18 companies that paid dividends consistently from 2002 to 2008. The data was then analyzed by re-computing the dividends that should have been paid if the dividend constant model was applied. This recomputed figure was later compared to the dividends as paid out by the companies during the period of study.
Aduda, J., & Kimathi, H. (2012). The Applicability of the Constant Dividend Model for Companies Listed at the Nairobi Stock Exchange. Journal of Financial Studies & Research, 1–38. https://doi.org/10.5171/2011.200170