Dividend Payout Ratio

valuation

The percentage of earnings paid out as dividends. A payout ratio of 60% means the company distributes 60% of its earnings to shareholders. Very high ratios (above 80-90%) may be unsustainable, while very low ratios suggest room for dividend increases. REITs typically have high payout ratios by design.

Related Terms

Dividend Yield Earnings Per Share (EPS) Return on Equity (ROE)

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