Payout Ratio
The percentage of earnings paid out in dividends. It is calculated by dividing dividends per share by earnings per share.
The payout ratio indicates how well earnings support the dividend payments: the lower the ratio, the more secure the dividend.
How and Why Do Companies Pay Dividends?
- Explore arguments for and against company dividend policy, and learn how companies determine how much to pay out.
The Importance of Dividends
- Seven words that are music to investors' ears? "The dividend check is in the mail."
How Dividends Work For Investors
- They might not be as "sexy" as growth stocks, but paid dividends are profits put directly into your hands.
Do I receive the posted dividend yield every quarter?
The Power of Dividend Growth
- Dividends may not seem exciting, but they can certainly be lucrative. Learn more here!
Related Terms
Dividend
Earnings per Share
Retention Ratio
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