Payout ratio

Payout ratio
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. The New York Times Financial Glossary

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   The proportion of a company's net profits that is paid out to shareholders in cash dividends. The ratio is calculated by dividing the total cash dividends by the company's earnings in the same period.

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payout ratio UK US noun [C]
ACCOUNTING, FINANCE the percentage of a company's profits that is paid to shareholders in dividends during a particular period of time: »

Dividends will be only 37% of earnings for the year, the lowest payout ratio since the company began keeping record.


Financial and business terms. 2012.

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Look at other dictionaries:

  • payout ratio — Generally, the proportion of earnings paid out to the common stockholders as dividends. More specifically, the firm s cash dividend divided by the firm s earnings in the same reporting period. Bloomberg Financial Dictionary * * * payout ratio… …   Financial and business terms

  • Payout Ratio — The amount of earnings paid out in dividends to shareholders. Investors can use the payout ratio to determine what companies are doing with their earnings. Calculated as: For example, a very low payout ratio indicates that a company is primarily… …   Investment dictionary

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  • payout ratio — noun : a ratio relating dividend payout of a company to its earnings or cash flow * * * the ratio between dividends paid out and earnings per share of common stock within a time period …   Useful english dictionary

  • payout ratio — the ratio between dividends paid out and earnings per share of common stock within a time period. * * * …   Universalium

  • payout ratio — (Economics) ratio between the net profit of a company and the dividend distributed to shareholders (reflects the dividend policies and maturity of a company) …   English contemporary dictionary

  • Dividend payout ratio — is the fraction of net income a firm pays to its stockholders in dividends: The part of the earnings not paid to investors is left for investment to provide for future earnings growth. Investors seeking high current income and limited capital… …   Wikipedia

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  • dividend payout ratio — Percentage of earnings paid out as dividends. Bloomberg Financial Dictionary * * * dividend payout ratio dividend payout ratio ➔ ratio * * * dividend payout ratio UK US noun [C] ► FINANCE the percentage of a company s profit that is paid as… …   Financial and business terms

  • 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 companies tend to have a higher payout ratio. In the U.K. there is a… …   Investment dictionary

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