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.

Look at other dictionaries:

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