Dividend Payout Ratio financial definition of Dividend Payout Ratio. Dividend Payout Ratio finance term by the Free Online Dictionary.

Dividend payout ratio

Percentage of earnings paid out as dividends.

Dividend Payout Ratio

In fundamental analysis, the opposite of the plowback ratio. That is, the dividend payout ratio is a company's dividends paid to shareholders expressed as a percentage of total earnings. A higher ratio indicates that a company pays more in dividends and thus reinvests less of its earnings into the company. Whether or not this is desirable depends on the rate of growth; investors tend to prefer a higher payout ratio in a slow-growing company and a lower one in a fast-growing company.

dividend payout ratio

See payout ratio.

Dividend payout ratio. You can calculate a dividend payout ratio by dividing the dividend a company pays per share by the company's earnings per share. The normal range is 25% to 50% of earnings, though the average is higher in some sectors of the economy than in others.

Some analysts think that an unusually high ratio may indicate that a company is in financial trouble but doesn't want to alarm shareholders by reducing its dividend.

Dividend Payout Ratio

What Does Dividend Payout Ratio Mean?

The percentage of earnings paid to shareholders in dividends. It is calculated as follows:

Investopedia explains Dividend Payout Ratio

The payout ratio provides an idea of how well earnings support the dividend payments. More mature companies tend to have a higher payout ratio. In the United Kingdom there is a similar ratio that is known as dividend cover. It is calculated as earnings per share divided by dividends per share.

Related Terms:
• Dividend
• Earnings per Share—EPS
• Ex-Date
• Ex-Dividend
• Record Date

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DDM Dividend Discount Model Payout Ratio Retention Rate	4bn share buyback and raised its dividend payout ratio as it seeks shareholder approval for its pounds 8. Akzo in pounds 1.4bn buyback; In association with RBS by The Journal (Newcastle, England) The decision is in line with the company policy to keep its dividend payout ratio, or the payout as a percentage of net profit, to 20-25 percent, the Kyoto-based technology firm said. Kyocera to raise fiscal yearend dividend payout 10 yen to 60 yen by Japan Weekly Monitor The Company bases its decisions on dividends on a comprehensive assessment of earnings trends, the level of internal reserves needed for future growth and the dividend payout ratio. Kennedix Announces Revision to Dividend Forecasts for FY2006 by JCN Newswires	Divida subordinada Divided Account divided interest Dividend Dividend Adjustment Dividend Capture Dividend Clawback Dividend Clientele Dividend Coverage Dividend Disbursing Agent Dividend Discount Model Dividend Discount Return Dividend Distribution Dividend Enhanced Convertible Stock Dividend Equivalent Right Dividend Exclusion Dividend growth model Dividend Imputation Dividend in Arrears Dividend Income Dividend Limitation Dividend Order Dividend Payable Dividend Paying Agent Dividend Payment Date Dividend Payout Ratio Dividend per Share Dividend Period Dividend Policy Dividend rate Dividend Record Dividend Reinvestment Plan Dividend Requirement Dividend Right Dividend Rights Dividend Rollover Plan Dividend Tax Credit Dividend Test Dividend Trade Roll/Play Dividend Yield Dividendo Dividendo a cuenta Dividendo acumulativo Dividendo compensatorio Dividendo de acciones preferidas Dividendo de capital Dividendo declarado Dividendo diferido Dividendo do final de um exercicio Dividendo en acciones Dividendo en bonos	Dividend Enhanced Convertible Stock Dividend Enhanced Convertible Stocks Dividend Equivalent dividend equivalent right Dividend Equivalent Rights Dividend Equivalent Rights dividend exclusion Dividend Exclusions Dividend growth model Dividend growth model Dividend imputation Dividend Imputations Dividend in arrears Dividend income Dividend Incomes Dividend Index of Europe, Far-East Asia, and Australasia Dividend limitation Dividend Limitations Dividend Order Dividend Orders dividend payable Dividend Paying Agent Dividend Paying Agents dividend payment date Dividend Payment Dates Dividend Payout Dividend Payout Ratio Dividend Payout Ratios Dividend Payouts Dividend Per Share Dividend Per Share Dividend Period Dividend Periods Dividend Policies Dividend policy Dividend rate Dividend record Dividend Records Dividend Reinvestment Dividend Reinvestment and Stock Purchase Plan Dividend reinvestment plan Dividend reinvestment plan Dividend reinvestment plan Dividend reinvestment plan Dividend reinvestment plan Dividend reinvestment plan Dividend Reinvestment Plans Dividend reinvestment program Dividend reinvestment program Dividend Reinvestment Programs Dividend Reinvestment Scheme Dividend requirement Dividend Requirements Dividend Right Dividend rights Dividend rollover plan Dividend Rollover Plans

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DDM
Dividend Discount Model
Payout Ratio
Retention Rate

4bn share buyback and raised its dividend payout ratio as it seeks shareholder approval for its pounds 8.

Akzo in pounds 1.4bn buyback; In association with RBS by The Journal (Newcastle, England)

The decision is in line with the company policy to keep its dividend payout ratio, or the payout as a percentage of net profit, to 20-25 percent, the Kyoto-based technology firm said.

Kyocera to raise fiscal yearend dividend payout 10 yen to 60 yen by Japan Weekly Monitor

The Company bases its decisions on dividends on a comprehensive assessment of earnings trends, the level of internal reserves needed for future growth and the dividend payout ratio.

Kennedix Announces Revision to Dividend Forecasts for FY2006 by JCN Newswires

Dividend Disbursing Agent

Dividend Discount Model