Dividend Payout Ratio

Knowledge Center



Summary, forum, best practices, expert tips and information sources.

13 items • 248.344 visits


Summary

Dividend Payout Ratio


The Dividend Payout Ratio is a model for Cash Flow Measurement, used by investors to determine whether a company is generating a sufficient level of cash flow to assure a continued stream of dividends to them. It is also a measurement of the amount of current net income, which is paid out in dividends, instead of the amount retained by the business.



Dividend Payout Ratio calculation

The Dividend Payout Ratio Formula (Cash Flow Measurement Formula) is relatively straightforward:

Divide total annual dividend payments by annual Net Income plus Noncash Expenses minus Noncash Sales.


Calculating the Dividend Payout Ratio during one year provides a very unreliable indication only. A better approach is to run a trend line on the ratio during several years to see if a general pattern of decline or increase emerges.


This ratio is useful in projecting the growth of company as well.


 

Retention Ratio

Its inverse, the Retention Ratio (the amount not paid out to shareholders in the form of dividends), can help to predict a company's growth.


Special Interest Group

Dividend Payout Ratio Special Interest Group.



Special Interest Group (6 members)

Discuss

Forum about the Dividend Payout Ratio.


 

🔥 NEW What are the Effects of Interim Dividend?
What are the effects of interim dividend declared on the company and on shareholders?...
2
 
1 comments

Best Practices

The top-rated topics about the Dividend Payout Ratio. Here you will find the most valuable ideas and practical suggestions.


Expert Tips

Advanced insights about the Dividend Payout Ratio. Here you will find professional advices by experts.


Information Sources

Various sources of information regarding the Dividend Payout Ratio. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.


Financial Statement Analysis | Ratio Analysis

Ratio Analysis, Finanical Statement Analysis
This presentation provides insights in Financial statement and ratio analysis, and includes the following sectios: 1. F...

Returns and Dividends

Dividend payout ratio
Study by Ian D. McManus a.o. concludes that the inclusion of Payout Ratio is an important adjunct to Dividend Yield in e...

Dividend Payout Ratio Diagram

Dividend Management
Download and edit this 12manage PowerPoint graphic for limited personal, educational and business use. Republishing in ...

Introduction to the Balance Sheet

Initial Understanding of a Balance Sheet, Financial Statement Analysis, Accounting
This video explains the main terms you need to read a balance sheet Assets: things a company owns that have value. -...

Research Links

Automatically jump to further useful sources regarding the Dividend Payout Ratio.


News

News

Videos

Videos

Presentations

Presentations

Books

Books

Academic

Academic

More

More


Compare with Dividend Payout Ratio:  Cash Flow from Operations  |  Debt to Equity Ratio  |  CFROI  |  Cash Value Added  |  Cash Ratio  |  Economic Value Added


Return to Management Hub: Finance & Investing


More Management Methods, Models and Theory

Special Interest Group

Do you have a keen interest in the Dividend Payout Ratio? Become our SIG Leader

 


About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2022 12manage - The Executive Fast Track. V15.8 - Last updated: 29-5-2022. All names ™ of their owners.