Feasible target payout ratios

Feasible target payout ratios

Payout ratios that are consistent with the level of excess funds available to make cash dividend payments.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Feasible Target Payout Ratio

The payout ratio (or what a company pays in dividends as a percentage of its earnings) that it can afford based on its free cash flow. Maintaining feasible target payout ratios helps ensure that a company does not pay more than it can afford in dividends.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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