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Dividend payout ratio

What is a dividend payout ratio?

A dividend payout ratio is that calculates the percentage of earnings paid to shareholders in cash by the company.

This can show the maturity of company: the higher the payout, the more mature the company.

  • Mature companies have a high dividend payout ratio
  • Fast growing companies re-invest most of their earnings in the business and have very low dividend payout ratios.


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