Anil, Kanwal and Sujata Kapoor (2008) in their research paper titled "Determinants of dividend payout ratios
--A study of Indian Information Technology sector" published in International Resource Journal of Finance and Economics have tried to identify various factors like profitability , cash flows etc which influence the dividend payout ratio
in Information Technology sector in India in the current scenario.
High payout ratios
can be just a temporary glitch or a sign of a significant problem.
1) Therefore, if shareholder protection and transparency are keys to higher payouts, payout ratios
should increase after cross listing.
Nestle and ITC's payout ratios
fell in spite of double- digit profit growth.
Larger firms tended to have higher payout ratios
than smaller firms.
Tracy and his team recently scoured the investment landscape in search of companies with dividends yields above 4%, payout ratios
equal to or less than 100%, and a history of boosting dividends by an annualized rate of at least +5%.
Firms prefer internal financing to external financing and will adapt their target payout ratios
to their investment opportunities.
Finally, Fitch notes that CPT's cash flow payout ratios
are high for the 'BBB+' rating category.
In this connection, after analyzing the implications of the TRA on individual and corporate investors, Ben-Horim, Hochman and Palmon |5^ predict that dividend payout ratios
should increase in the post-TRA period.
In many cases, the 'right thing' will be to return more cash to shareholders, through dividends, causing payout ratios
to rise over the next decade.
Lawrence Payout Ratio
Trust is a passively managed portfolio of the 40 Canadian income funds allocated among business and industrial funds, commodity based royalty trusts, real estate investment trusts and pipeline and power generation funds in accordance with specific sector weightings, that have the lowest estimated payout ratios
within each such income fund sector, as determined by the manager.
Negative factors include the high level of dividend payout ratios
to its parent.