Payout ratio

Financial News Glossary: Payout ratio

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Payout ratio

A payout ratio, expressed as a percentage, is the rate at which a company distributes earnings to its shareholders in the form of dividends.

For example, a company that earns $5 a share and pays out $2 a share has a payout ratio of 2 to 5, or 40%.

A normal range for companies that do pay dividends is 25% to 50% of earnings. But the percentage may vary if a company keeps the amount of its dividend consistent with past dividends regardless of a drop in its earnings.

Financial News: payout-ratio

Article
Xcel Energy, Consolidated Edison and Duke Energy hit 52-week highs yesterday.
12/2/09 7:58AM
Article
Magellan Midstream Partners, Kimberly-Clark and Amazon.com are 'buy'-rated stocks that just hit 52-week highs.
12/1/09 5:00AM
Article
Shares of American International Group fell sharply after a bearish research firm said it estimates the company's loss reserves are deficient by about $11 billion.
11/30/09 4:53PM
Article
As other banks fail, Prosperity Bancshares offers stability and a dividend that has room to grow.
11/30/09 8:42AM
Article
Our analyst believes the company's EBITDA profitability provides little equity value at current levels.
11/25/09 8:00AM
Article
Iberiabank has done well with acquisitions in 2009, making a number of FDIC-assisted deals that are already yielding benefits, and it's got the cash and conviction to do more.
11/24/09 8:11AM
Article
Agilent Technologies, American Tower, DuPont, Barrick Gold and Disney hit 52-week highs yesterday.
11/18/09 9:36AM
Article
Shares of electricity provider Cleco are cheap based on earnings, and the company could raise its dividend.
11/17/09 5:00AM
Article
While AT&T and Verizon shares have similar P/E ratios, AT&T has been bringing in more cash.
11/11/09 5:25AM
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