This study examines the Corporate Dividend Behavior in the Malaysian context through John Lintner's Stock Adjustment Model and other variations of this model. Results of this replication will be useful for designing dividend policies at the firm level and to analyze the saving behavior at the macro level. The Trading and Services Companies listed on the Kuala Lumpur Stock Exchange constitute the sample for the present study carried out as cross-sectional analysis for the years 1998 to 2001. The results are found to be consistent with Lintner's model and they advance evidence that stable rather than erratic dividend policies are preferred by the Malaysian corporate sector. The corporate dividend behavior is represented by the twin parameters of target payout ratio and adjustment factor; there seems to be a certain degree of predictability in the dividend movement. Contrary to other studies carried out in the developing countries, the dividend behavior in the Malaysian corporate sector is found to be more stable relative to that of other emerging capital markets. The empirical results show that the main determinants of current dividends are the lagged dividends and the current earnings, which evidence is more similar to those in developed capital markets like the US. This observed desire for stable dividend policies on the part of corporate management offers additional support to the argument of `information content of dividends' in the context of dividend and market value of the firm. The period covered for analysis of dividend behavior is the one lying very close to the financial crisis in the South East Asian Region. The presence of concern for stable dividend policies, as revealed through the empirical results, is interesting in itself. This reflects the desire on the part of corporate management to compensate the shareholders for their sacrifices during financial crisis as well as the desire to use this financial policy as a signalling device; these results, thus, point towards patterns which are important for understanding the role of dividends.