payout ratio

Definition

Dividends paid divided by company earnings over some period of time, expressed as a percentage. also called dividend payout ratio.

Use payout ratio in a sentence

You need to try and figure out what the payout ratio will be on any risky investment you want to try.

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I wanted to know the payout ratio and also what the difference was between certain factors in the family company.

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The payout ratio was generous enough to inspire a lot of investor confidence in the company, which had been sorely lacked in previous years.

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equity multiplier ratio