Dividend Payout Ratio

#1
Hi Friends,

Can anyone help me understand how to calculate dividend payout ratio,

what this ratio actually means????


Thanks in Advance.
Durai007.
 
#2
Dividend payout ratio is simply Dividend/ Earning.

A company may or may not declare dividend. Dividend basically implies sharing the earning with shareholder. The company may (and usually does) keep a fraction of earnings with itself to grow the business. The rest is shared with shareholders. The fraction that is shared with shareholders is called Dividend Payout ratio.
 

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