Finding Companies that Share the Highest Amount of Profits
by Roger Wohlner
Payout ratios are calculated by dividing dividends per share by earnings per share and indicates the percentage of profits the company is distributing to shareholders. If investors are seeking to invest in companies that share the highest amount of profits with their shareholders, this method would help investors find the companies to best match their objectives.
Source: http://www.investorguide.com/igu-article-828-stock-strategies-evaluating-potential-stock-investments.html