Dividend payout ratio

(redirected from Dividend Payout)

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

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.

References in periodicals archive ?
The board's stated long-term targeted dividend payout ratio continues to be in the range of 60 to 70 percent of earnings from operations.
neutral third party consultant hired by MAP.MPCL first qualified for the Awards in 2016-17 on the basis of dividend payout and since then has emerged a winner in the Oil and Gas Sector every year.
On Tuesday, Equity declared a final dividend payout of Sh0.50 per share.
Summary: Shareholders of have been buying into the stock in anticipation of a dividend payout
Muscat: Bank Muscat, the flagship financial services provider in the Sultanate, has revised the proposed dividend payout to 40 per cent from 35 per cent for the year 2018.
The dividend payout ratio has been the subject of debate since long ago.
The regular cash dividend produces a forward yield of 3.95% based on the market value at the most recent quarter end and represents an increase during the current year of $0.06, or 13.04%, over the regular cash dividend payout in 2017.
SHAREHOLDERS of Fidson Healthcare Plc have unanimously approved the dividend payout of N300 million for the year ended 31 December 2017, representing 20 kobo per ordinary share of 50 kobo.
Entercom has a dividend payout ratio of 38.3%, which means that the company spends approximately $0.38 for dividend distribution out of every $1 earned, Accesswirereports.
Their dividend payout ratio has been far larger than the figure of domestic banks, and industry observers denounced their practices for focusing only on "draining the nation's wealth" without fulfilling corporate social responsibility programs
7,881 Crore, being the highest ever dividend payout by the Company in a financial year.
Italy-based investment bank, Mediobanca, has said that it has raised its dividend payout, according to Reuters.