payout ratio definition

payout ratio

Percentage of a firm's earnings paid as dividends to stockholders (shareholders), it indicates how well the firm's earnings support dividend payments. Lower this percentage, more secure the dividend payment. Also called dividend payout ratio. See also dividend cover. Formula: Dividend for a period x 100 ÷ Earnings for the same period.

payout ratio is in the Accounting & Auditing, Banking, Commerce & Finance and Investing subjects.

payout ratio appears in the definitions of the following terms: dividend payout ratio and dividend cover

payout ratio appears in the other term:

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