Pay Out

(redirected from pay-out)
Also found in: Dictionary, Thesaurus, Legal.
Related to pay-out: Pay Out Ratio

Pay Out

To pay dividends to shareholders, as opposed to reinvesting profits in the company. The more of a company's profits it pays out, the less it reinvests (or plows back). Whether or not this is desirable depends on the rate of growth. Investors tend to prefer a higher pay-out in a slow-growing company and a lower one in a fast-growing company.
References in periodicals archive ?
Wesleyan Assurance claimed this week that the latest pay-outs on its with-profit endowment policies confirm its position among the top performers in the authoritative annual survey of life assurance returns by Money Marketing.
The warning comes from Mr Mike Urmston, chief actuary and finance director of CGU Life, after the company had trimmed its with-profit pay-outs for the first time for several years.
When Aviva started this process they were led to expect pay-outs of around pounds 1,000.
The cases amount to 73% of the former shipyard employers' total asbestos claims and the payments are 40% of the company's total compensation pay-outs.
Wesleyan has tempered top-ohe-market pay-outs from its endowment policies maturing this year with a warning.
Kirklees Council reduced its compensation pay-outs from pounds 64,133 in 2008-09 to pounds 22,230 in 2010-11.
It is believed the five will pay tax at the current rate of 10% on the pay-outs rather than the new higher rate of 18% announced by Chancellor Alistair Darling last week.
But they could have to wait several years - until their policies mature - to get the full pay-out.
The UK's largest mutual retailer said the pay-out pot had nearly doubled from the pounds 19.6m last year.
The average pay-out on a pounds 50- a-month, 25-year policy fell from pounds 54,452, to pounds 52,445, the lowest for 15 years.
The Robin Hood Tax campaign has described the pay-out as 'eye watering.' It pointed out that the bank's five highest earners made GBP29m, which is about 219 times the average UK salary on an average.