Definition: Dividend Payout Ratio (DPR) is used to measure the extent to which earnings per share have been used for paying dividends to stockholders. A low payout ratio can indicate that a company’s dividend is small compared to its earnings.
Formula:
Dividend Payout Ratio = Dividend per Share / Earnings per Share
Example 1:
TTC Company paid out $2.10 per share in annual dividends and had
No comments:
Post a Comment