Financial Glossary  
           
 Glossary Tutorials Articles About Advertise Contact
Browse the largest investing glossary online.   Search
A
1|2|3
B
1|2
C
1|2|3
D
1|2|3
E
1|2|3
F
1|2|3
G
1|2|3
H
1|2|3
I
1|2|3
J
1|2
K
1|2|3
L
1|2|3
M
1|2|3
 
N
1|2|3
O
1|2|3
P
1|2|3
Q
1|2
R
1|2|3
S
1|2|3
T
1|2|3
U
1|2|3
V
1|2|3
W
1|2
X
1|2
Y
1|2|3
Z
1|2
#
1|2

 
Include Definitions
(more results)
Browse by Category
 
Investing / Investments
Real estate investing
Stock investing
Investment management
Retirement investing
Bonds / bond funds
Mutual Funds
 
Personal Finance
Business and finance
Household finance
Mortgage
Finance dictionary
Corporate finance
Financial service
Money management
Estate planning
Loans
 
Stock Market Investing
Stock research
Stock trading
Stock options
Stock trading
Stock exchanges
 
 
InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Payout ratio  

Definition 1.

Generally, the proportion of earnings paid out to the common stockholders as cash dividends. More specifically, the firm's cash dividend divided by the firm's earnings in the same reporting period.
 

Definition 2.

Dividends paid divided by company earnings over some period of time, expressed as a percentage. also called dividend payout ratio.
 

Definition 3.

The latest indicated annual dividend rate divided by the latest 12 months'' EPS. Basically, this tells us how much of earnings are paid out in dividends. A company with a high payout ratio can be appealing to conservative investors who want income, but by paying out so much of earnings, the company will have little left to finance growth. A high payout ratio can be cause for concern when coupled with weak or falling earnings, since it could mean a dividend cut is in the offing, or that the company is shortchanging reinvestment to keep up its payout. For most companies, the payout ratio should not exceed two-thirds of earnings. Like most ratios, however, this one varies with industry. Real estate investment trusts pay out almost all their earnings because of a provision in the law that exempts them from taxes if they do so. Utilities also have high payout rates. By contrast, newer, faster growing companies often pay no dividends at all.
 

Definition 4.

The percentage of earnings paid out in dividends. It is calculated by dividing dividends per share by earnings per share.
 
  Home | Glossary | Tutorials | Articles | About
Webmasters |Advertise | Contact | Privacy


All material Copyright InvestHub.com and IAT Inc., 2003-2014