Business / Taxes / Payout Ratio: A payout ratio, expressed as a percentage, is the rate at which a company distributes earnings to its shareholders in the form of dividends. For example, a company that earns $5 a share and pays out $2 a share has a payout ratio of 2 to 5, or 40%. A normal range for companies that do pay dividends is 25% to 50% of earnings. But the percentage may vary if a company keeps the amount of its dividend consistent with past dividends regardless of a drop in its earnings.
Ratio Adverb Synonyms: proportion, relationship, correlation, correspondence
Business / Accounting / Dividend Payout Ratio: A measure of the percentage of earnings paid out in dividends: computed by dividing cash dividends by the net income available to each class of stock. MORE
Business / Agriculture / Organization For Economic Development And Cooperation (OECD): An international organization established by the United States, Canada and certain Western European countries in 1960. The OECD studies and discusses trade and related matters. Its current 29 members MORE