Dividend payout ratio, Finance Basics

Dividend Payout Ratio

Dividend payout ratio = (DPS/EPS) x 100

                                    = Dividend paid/ Earning to ordinary shareholder

This is the reciprocal of dividend cover. It shows the proportion of earnings such was paid out as dividend as a payout ratio of 40% means 60% of earnings were retained as 40% was paid out like dividend,

Hence retention ratio = 1 - dividend payout ratio

Posted Date: 1/30/2013 2:21:18 AM | Location : United States







Related Discussions:- Dividend payout ratio, Assignment Help, Ask Question on Dividend payout ratio, Get Answer, Expert's Help, Dividend payout ratio Discussions

Write discussion on Dividend payout ratio
Your posts are moderated
Related Questions
purchase a machine worth Shs.1,500,000 which will have a residue value Shs.200,000 after 5 years useful life. The saving in cost resulting from the use of this machine are: Sh



What is the role of a broker in security transactions? How are brokers compensated? Ans: Brokers handle orders to sell or buy securities. Brokers are agents who work in place o

Leverage and Coverage Ratios   (The data for interest coverage are in I-Metrix's liquidity ratios section.  The others listed in this table are in the leverage ratios section

Question   Clifton-Peters Ltd is a manufacturer of household goods located in Melbourne. They presently make and wholesale fruit juicers, blenders and baking equipment. The Gen

Reasons for major Growth in Venture Capital Reasons for Significant Growth in the Developed Countries in Venture Capital i) Public attitude that is a favorable attitude

what is bank draft?How it can be prepared?

Problem: Cash Flow Analysis For the attached Gantt chart, the following information is available: Invoices are sent at the end of each month. Mark up is 20% on each invoi

The business plan for a new company that has obtained a 5 year lease for operating a local bus service is shown below.  Items marked with an asterisk represent continuous cash flow