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
Determine the Types of users Investors -look at the risk of their investment, future growth and profitability. Managers / employees-have access to more information and will want

CAPITALISATION RATE=0.01 EARNINGS PER SHARE(E)=10 ASSUME RATE OF RETURNS ON INVESTMENTS (R):15

Considerations before a MBO An MBO is just like any other take over and same consideration must be applied. (i)  Potential of the business. Is it worth buying? What does the

Q. Investigate the following functions for both horizontal and vertical asymptotes, x and y-intercepts, and state the domain and range of each and where the function is increasing

The following is incomplete financial statements for XYZ, Inc.:                                                     XYZ, Inc.

Regulatory Aspect Employees Provident Fund Organization (EPFO) is under the Ministry of Labor and is a primary organization for retirement income for private employees in India

Q. Limitation of weighted average cost of the capital? 1) Determine the Weight; the first and foremost difficulty in computing the average cost is to an easy job. This type of

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

Goal of Shareholders wealth maximisation Shareholders' wealth maximisation goal gives us the best results since effectsof all the decisions taken by company and its managers ar

One of the well-known soccer clubs in Australia, Sydney, has made a decision to include its players on the club's statement of financial position as assets. These players are signe