Payout period

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Payout period

The time period during which withdrawals from a retirement account or annuity are paid.

Payout Period

1. The period of time during which benefits on an annuity or retirement account are paid.

2. In entrepreneurship, a period of time in which cash flow is negative. This especially applies to an early part of a company's history before it has recovered start-up costs and operating expenses.

3. In stocks, dividends per share divided by earnings per share, expressed as a percentage. Stock analysts use this ratio to compute how much of a company's profits it pays in dividends, and perhaps how that compares to other, similar companies. Stockholders prefer companies that pay more in dividends.