TY  - UNPD
A1  - Bräuer, Konstantin
A1  - Hackethal, Andreas
A1  - Hanspal, Tobin
T1  - Consuming dividends
T2  - SAFE working paper series ; No. 280
N2  - This paper studies why investors buy dividend-paying assets and how they time their consumption accordingly. We combine administrative bank data linking customers’ consumption transactions and income to detailed portfolio data and survey responses on financial behavior. We find that private consumption is excessively sensitive to dividend income. Investors across wealth, income, and age distributions increase spending precisely around days of dividend receipt. Importantly, the consumption response is driven by financially prudent investors who select dividend portfolios, anticipate dividend income, and plan consumption accordingly. Our results contribute to the literature on a dividend clientele and provide evidence of ‘planned’ excess sensitivity.
T3  - SAFE working paper - 280 
KW  - Consumption
KW  - Stock market wealth
KW  - Dividends
KW  - Excess sensitivity
KW  - Self-control
KW  - Household finance
KW  - Retail investors
Y1  - 2020
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/53456
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-534560
UR  - https://ssrn.com/abstract=3466731
PB  - SAFE
CY  - Frankfurt am Main
ER  -