Payout ratio
Fundamental analysisThe proportion of earnings paid out as dividends.
In plain terms
Under about 60% is affordable. Above 100% the dividend is funded from reserves or debt — a countdown.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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The proportion of earnings paid out as dividends.
Under about 60% is affordable. Above 100% the dividend is funded from reserves or debt — a countdown.