Financial Education

Dividend Payout Ratio

Dividends / Net Income

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Fundamental

Dividend Payout Ratio

Dividends / Net Income

Definition

Payout ratio shows what percentage of net income is distributed as dividends. High ratios (>80%) suggest mature companies with limited growth opportunities, while low ratios indicate reinvestment for growth.

Related Topics

#dividend policy #retention ratio #growth #maturity

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Category: Fundamental

Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.

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