Home » Stock Terms Dictionary » Dividend Payout Ratio

Definition Of Dividend Payout Ratio:

The percentage of earnings paid to shareholders in dividends.
Calculated as:The payout ratio provides an idea of how well earnings support the dividend payments. More mature companiestend tohave a higher payout ratio.In the U. there is a similar ratio, whichis known as dividend cover. It iscalculated as earnings per share divided by dividends per share.

Other Definition Of Stock Terms:

Dividend Policy
Dividend Reinvestment Plan - Drip
Dividend Tax Credit
Dividend Yield
Dividends Received Deduction - Drd
Do Not Increase - Dni

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