Home > Term: payout ratio
payout ratio
Indicates the percentage of earnings paid out in dividends. Calculated by dividing the indicated annual dividend by per-share earnings. A payout ratio of less than 80% is typically considered secure unless it is a REIT. It is not unheard of for a REIT to have a payout ratio in excess of 100%.
- Part of Speech: noun
- Industry/Domain: Financial services
- Category: Funds
- Company: Merrill Lynch
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- MJ63
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