Dividend payout ratio

(redirected from Dividend Payouts)

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 UK saw underlying growth in dividend payouts of 5.3%, although Janus Henderson said this was mainly due to special dividends - including PS1.7bn by the Government-backed Royal Bank of Scotland.
M2 EQUITYBITES-August 19, 2019-ZenSports to issue dividend payouts on SPORT cryptocurrency token
(i) shortlisting on the basis of dividend payouts during the last three years (ii) detailed financial assessment (iii) review of management practices, and (iv) management interviews.
As a result, our strong financial performance and capital position support the Company's decision to declare quarterly cash dividend payouts to shareholders.
This theory state that if the managers want to please the shareholders, they should pay high dividend payouts to minimize the agency problem, otherwise shareholders may think that their money may be wasted on unnecessary project and compensation for the management.
Over the past few years, Gazprom consistently increased its dividend payouts, with RUB 5.99 per share paid in annual dividends based on the Companys operating results in 2012, followed by RUB 7.2 per share for 2013 and 2014, RUB 7.89 per share for 2015, and RUB 8.0397 per share for 2016.
Dividend policy is defined as dividend payouts as well as the decision to pay or not to pay dividends to shareholders.
reined in dividend payouts in 2015/16, a consequence of subdued corporate results in the fiscal year.
Other fund houses have also either announced or made dividend payouts. While Sundaram MF has offered Rs 0.50 per unit, BNP Paribas MF is providing Rs 0.25 per unit.
The AMCL Fund has already paid out six per cent and with a total return of 21 per cent, we have enough capacity to continue our quarterly dividend payouts for the foreseeable future," Dash explained.
Buran, Flushing Financial's president and chief executive officer, said: "Our strong capital position, as well as our confidence in the opportunities for future growth, underlie the company's decision to declare quarterly cash dividend payouts to shareholders.
Limited capital; downside risk to dividend payout. With the CAR at 11.6 per cent as of December 2012, we believe that the bank will judiciously cut dividend payouts in an effort to retain capital to support lending as and when the economic fundamentals improve.