Payout Ratio
What is it? The percentage of net income paid out to shareholders in the form of dividends. Analysts evaluating income stocks often look at a companys payout ratio to see if there is still room for a company to increase dividends in the future. For example, a company with an 85% payout ratio might find it difficult to increase dividends. A company with a 50% payout ratio has more flexibility.Added By: Justin
The Payout Ratio definition has been viewed 351 Time(s)!
Send To Friends!
If you'd like to send the Payout Ratio definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -We hope you now understand the meaning of Payout Ratio. If you need any more information on this term, please don't hesitate to contact us.