Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,896,813,577 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Target Payout Ratio

    0.01 sec.
Target payout ratio
A firm's long-run dividend-to-earnings ratio. The firm's policy is to attempt to pay out a certain percentage of earnings, but it pays a stated dollar dividend and adjusts it to the target as base line increases in earnings occur.

Target Payout Ratio
The dividend that a publicly-traded company attempts to pay to shareholders each year as a percentage of its total earnings in a given year. There is no guarantee that the company will be able to pay the target payout ratio; if its earnings are particularly low in a year, it may pay a smaller percentage or even no dividend at all. It is important to note that even if the target payout ratio remains the same, the actual dividend may differ as earnings change each year and the payout ratio is a percentage rather than a dollar amount. See also: Omitted Dividend.


Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Feedback
Add definition
Mentioned in?  References in periodicals archive?   Financial browser?   Full browser?
 
With respect to dividend payment, the Company will increase the target payout ratio to 20% of the consolidated net income.
The estimated coefficients on aggregate affiliate net income and aggregate lagged dividends reported in column 2 imply that parent firms with zero leverage have a target payout ratio of 50.
Emerging market firms often do have a target payout ratio like their developed country counterparts, but they are generally less concerned with volatility in dividends over time and, consequently, dividend smoothing over time is less important" (Glen et al.
 
 
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.