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Now, they are starting to rebuild those inventories and the trend in dividend changes is turning positive.
Fama also conducted early work in how stock prices adjust to dividend changes -- he showed how markets moved swiftly to recognise the promise of higher payments.
Among other breakthroughs, he proved that stock prices moved much more than dividend changes - which is unusual because if markets work well you'd might expect less movement.
The list of stocks has since been broadened, and the divisor has been adjusted to compensate for stock splits, stock substitutions, and significant dividend changes.
In a normal year, companies announce 10 to 20 times more favorable than unfavorable dividend changes, but the last two years have been anything but normal.
The National Association of Real Estate Investment Trusts, which had sought the dividend changes, maintains that they are necessary right now, in large part because financing is harder to come by, both from banks and the debt markets.
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Corus Bankshares stock is a bit below where it traded before the dividend change was announced on June 4.
The dividend change would not affect them.
The dividend change was also expected; while it was higher than some had anticipated, it was not enough to truly rock the boat.
Tracking error may occur because of imperfect correlation between the Fund's holdings of portfolio securities and those in the Underlying Index, pricing differences, the Fund's holding of cash, differences on timing of the accrual of dividends, changes to the Underlying Index or the need to meet various regulatory requirements.
This would suggest that dividends change with earnings.
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