5 billion A Zurich Economic Capital Model (Z-ECM) ratio of 100% - 120%, unchanged from the previous financial targets A new dividend policy with a target payout ratio
of around 75% of net income after tax attributable to shareholders (NIAS).
A firm should have a target payout ratio
and periodically adjust the payout toward the target 3.
State Street, which has taken advantage of volatility in Europe before, also expressed its commitment to returning capital to shareholders, with plans for a stock buyback with a target payout ratio
in the range of 20-25%.
The company plans to distribute higher cash flows to shareholders with a medium-term target payout ratio
of 20-40% of IFRS net income, with dividends being paid several times a year.
The target payout ratio
of a firm depend on factors like growth and earning prospects of a particular company; the average cyclical movement of investment opportunities; working capital requirements; and internal fund flows judged by past experience; the relative importance attached by management to long-term capital gain as compared with current dividend income for its stock holders; its access to the capital markets on favorable terms, and company policies with respect to use of outside debt
The estimated coefficients on aggregate affiliate net income and aggregate lagged dividends reported in column 2 imply that parent firms with zero leverage have a target payout ratio
Emerging market firms often do have a target payout ratio
like their developed country counterparts, but they are generally less concerned with volatility in dividends over time and, consequently, dividend smoothing over time is less important" (Glen et al.
t] = nominal earnings, and [Gamma] is the target payout ratio
If the surplus persists, it may gradually increase its target payout ratio
The introduction of a target payout ratio
of approximately 75 percent of Underlying Profit replaces AGLs current progressive dividend policy.