Dividend payout ratio, Financial Management

Dividend Payout Ratio

The percentage of earnings or profit paid to shareholders in dividends.

Computed as:

1979_dividend payout ratio.png


The payout ratio gives an idea about how well earnings assist the dividend payments. More mature companies likely to have a higher payout ratio.

In the U.K. there is a equivalent ratio known as dividend cover. It is computed as earnings per share divided by dividends per share.

Posted Date: 7/25/2012 9:13:07 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
Homework 1. Suppose you deposit $18,000 into an account today that earns 6% interest per year, and you do not withdraw the money for 21 years. What will be the balance in the acco

Which type of insurance company generally takes on the greater risks: a life insurance company or a property and casualty insurance company? The risks protected against by cas

Discuss the criteria for a ‘good’ international monetary system. Answer: A good international monetary system must offer (i) sufficient liquidity to the world economy, (ii)

Margin Trading: Suppose an investor wants to buy 100 Reliance Energy shares, whose market price is Rs.500. This transaction requires Rs.50,000 but the investor has only Rs.30,0

Define the term- Earnings per share (EPS) EPS = Profit available to ordinary shareholders (PAT) / Weighted average number of shares in issue(p per share) This ratio illustra

The Directors of Rohan Plc are discussing the importance of the dividend policy on the market value of their firm. The Chairman considers that the dividend is important and does a

Inflation and Exchange Rates To understand the impact of inflation, several terms should be understood. For example, inflation from the investors' standpoint must be clearly de

Assume that the current spot exchange rate is FF6.25/$ and the 3 month forward exchange rate is FF6.28/$. The 3 month interest rate is 5.6% per year in the U.S. and 8.8% per year i

Sapp Trucking's balance sheet illustrates a total of noncallable $45 million long-term debt with a coupon rate of 7.00% and a yield to maturity of 6.00%.  This debt presently has a