Dividend payout ratio

• Percentage of earnings paid out as dividends.

• Is computed by dividing the dividends paid on common shares by the net income which would be available for common stockholders.

• A measurement of the percentage amount of net income paid out in dividends rather than retained by the business to help it grow. Recent payout figures higher than 50% (and higher than the average payout) may forewarn of a dividend cut. This cut may result in the stock price falling. Sometimes, although the dividend payout is more than earnings, the company has strong cash flow and can cover the dividend. However, a company paying out dividends in excess of earnings on a recurring basis is a risky investment.

• Indicates the percentage of each dollar earned that is distributed to the owners in the form of cash; calculated by dividing the firm's cash dividend per share by its earnings per share.


Follow this link for all the terms related to dividendratio.

 Embedded terms in definition
Cash dividend
Cash flow
Common shares
Common stock
Earnings per share
Net income
 Related Terms
Acid test ratio
Appraisal ratio
Asset/equity ratio
Average dividend yield
Average percent payout
Average price earning ratio
Cash dividend
Cash flow coverage ratio
Cash ratio
Common equity ratio
Constant growth dividend valuation gordon model
Constant payout ratio dividend policy
Conversion ratio
Cost benefit ratio
Cum dividend
Cumulative dividend feature
Current pe ratio
Current ratio
Customary payout ratios
Days' sales in inventory ratio
Debt equity ratio
Debt ratio
Debt service coverage ratio
Debt to capital ratio
Debt to equity ratio
Debt/equity ratio
Discounted dividend model
Dividend clawback
Dividend clientele
Dividend date
Dividend discount model
Dividend growth model
Dividend irrelevance theory
Dividend limitation
Dividend or dividends
Dividend policy
Dividend rate
Dividend reinvestment
Dividend reinvestment plan
Dividend relevance theory
Dividend rights
Dividend valuation model
Dividend yield
Dividend yield funds
Dividend yield stocks
Earnings retention ratio
Ex dividend
Ex dividend date
Expense ratio
Extra dividend
Feasible target payout ratios
Financial ratio
Fixed asset turnover ratio
Fixed charge coverage ratio
Full payout lease
Funding ratio
Gold/silver ratio
Hedge ratio delta
Homemade dividend
Income replacement ratio
Indicated dividend
Interest coverage ratio
Inventory turnover ratio
Lagging pe ratio
Leading pe ratio
Liquidating dividend
Long term debt ratio
Long term debt to equity ratio
Low price earnings ratio effect
Low regular and extra dividend policy
Margin of profit ratio
Market book ratio
Market to book ratio
Operating profit ratio
Ordinary dividend
P/e ratio
Payout ratio
Pe ratio
Pe ratio to eps growth
Percent payout
Perfect market view of dividend policy
Plowback ratio
Potential average dividend yield
Preferred equity ratio
Price buy zone ratio
Price dividend will support
Price earnings ratio
Price to book ratio
Price to cash flow ratio
Price to earnings ratio
Price to sales ratio
Price/book ratio
Price/earnings p/e ratio
Price/sales ratio
Projected pe ratio
Q ratio or tobin's q ratio
Quick acid test ratio
Quick asset ratio
Quick ratio
Ratio analysis
Ratio of exchange
Ratio of exchange in market price
Ratio spread
Ratio writes
Receivables turnover ratio
Regular dividend policy
Residual dividend approach
Retention ratio
Reward to volatility ratio
Sharpe ratio
Signaling view on dividend policy
Small ordinary stock dividend
Special dividend
Stock dividend
Substitute cash or dividend payment
Target dividend payout ratio
Target payout ratio
Tax differential view of dividend policy
Times interest earned ratio
Total debt to equity ratio
Traditional view of dividend policy
Trailing pe ratio
Upside/downside ratio
With dividend
Working capital ratio
Yield ratio

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