The Dividend Payout Ratio is a financial metric that indicates the proportion of earnings a company pays out to its shareholders in the form of cash dividends. This ratio helps investors understand the distribution of corporate profits.
The Payout Ratio underscores the proportion of a company's earnings allocated to shareholders in dividends, providing insights into financial health and dividend policies.
An in-depth guide to understanding the payout ratio, including its definition, practical applications, different methods of calculation, and analytical insights.
