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 ?
Over ten years, Wesleyan increased its pay-out to pounds 7,205 from pounds 7,021 last year.
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.
It also betters the pay-outs from all the other 14 life companies that have reported so far.
Norwich Union said it would appeal against the judge's decision because it believed pay-outs for asbestos exposure were still too high.
But poor investment decisions and over-inflated pay-outs in the past mean that today many simply don't stack up enough to clear the debt.
Kirklees Council reduced its compensation pay-outs from pounds 64,133 in 2008-09 to pounds 22,230 in 2010-11.
But given the choice was between some money now or the vague possibility of a pay-out in several years time that's hardly surprising.
General Secretary Paul Kenny said: "The fact that they each only pay 10% tax on this pounds 50m pay-out shows how the Government have failed completely to deal with the abuse of the financial and tax systems by the private equity elite and shows that the system is rotten to its core.
The Robin Hood Tax campaign has described the pay-out as 'eye watering.
2bn in relation to 2007, but held interim dividends, then axed the final pay-out in 2008.
Consequently the ratings of IP&L and of IPALCO (see below) are predicated on the assumption that dividend flow, in line with a reasonable band around historical pay-out amounts, will continue over coming years.