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
List and explain the three financial factors that influence the value of a business. The three factors that influence the value of a firm's stock price are timing , cash flow

Problem: i) Assume a firm buys a new tooling machine for Rs 2000,000, installation costs net of taxes are Rs 300,000. An existing asset has a book value of Rs 400,000 and the

Define the meaning of rate of return on investment An investment project which provides positive NPV when its cash flows are discounted by cost of capital makes a net contribut

discuss the applicability operating cycle considering broilers in uganda?

Q. How to Select the pattern of the investment? When the funds have been procured than a decision about the investment pattern is to be taken. The selection of the investment p

DISSCUSS THE APPLICABILITY OF AN OPERATING CYCLE IN A VEGETABLE GROWING BUSINESS IN UGANDA?

The two main objectives are: To get at a single value: Measures of central value, by considering the mass of data in one single

Determine about the Zero Interest Bonds (ZIBs) Very much alike DDBs, only crucial difference is that these are issued at face values (DDBs are issued at a discount to face valu

Explain learning outcomes of financial management By the end of this subject guide as well as having done the relevant readings and activities you should be able to

Duration is often referred to as the approximate percentage change in the price for a 1% change in rates. Now, we will see some other definitions or interpretatio