Continuous dividend yield
= Continuous dividend yield
{title2=$dD_t=\delta S_tdt$}
A proportional continuous dividend payment at rate $\delta$ per unit time relative to the ex-dividend <stock> price. The total gain of one share is $dS_t+\delta S_tdt$. Under a <risk-neutral measure> with <short rate> $r$, a geometric <stock> diffusion therefore has ex-dividend drift $(r-\delta)S_t$. A fixed cash dividend at a specified date is a different convention and generally requires an ex-dividend price jump.