Pay Out

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Pay Out

To pay dividends to shareholders, as opposed to reinvesting profits in the company. The more of a company's profits it pays out, the less it reinvests (or plows back). Whether or not this is desirable depends on the rate of growth. Investors tend to prefer a higher pay-out in a slow-growing company and a lower one in a fast-growing company.
References in periodicals archive ?
Over ten years, Wesleyan increased its pay-out to pounds 7,205 from pounds 7,021 last year.
The warning comes from Mr Mike Urmston, chief actuary and finance director of CGU Life, after the company had trimmed its with-profit pay-outs for the first time for several years.
Aviva, for example, one of the biggest sellers of endowments, slashed pay-outs by up to 20%.
When Aviva started this process they were led to expect pay-outs of around pounds 1,000.
It also betters the pay-outs from all the other 14 life companies that have reported so far.
Norwich Union said it would appeal against the judge's decision because it believed pay-outs for asbestos exposure were still too high.
Kirklees Council reduced its compensation pay-outs from pounds 64,133 in 2008-09 to pounds 22,230 in 2010-11.
A TRADE union has accused bosses in the private equity industry of being "rotten to the core" after reports that five top partners have received record breaking pay-outs of pounds 50m each.
2bn in relation to 2007, but held interim dividends, then axed the final pay-out in 2008.
But they could have to wait several years - until their policies mature - to get the full pay-out.
Consequently the ratings of IP&L and of IPALCO (see below) are predicated on the assumption that dividend flow, in line with a reasonable band around historical pay-out amounts, will continue over coming years.