Dividend Payout Ratio
The percentage of earnings paid to shareholders in dividends.
Calculated as:
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Taobiz explains Dividend Payout Ratio
The payout ratio provides an idea of how well earnings support the dividend payments. More mature companies tend to have a higher payout ratio.
In the U.K. there is a similar ratio, which is known as dividend cover. It is calculated as earnings per share divided by dividends per share.