Dividend Payout Ratio Definition & Application Wiki

Dividend Payout Ratio Definition & Application Wiki

Last Updated by WikiWealth

Short Definition

Dividend payout ratio is the fraction of net income a firm pays to its stockholders in dividends:

\mbox{Dividend payout ratio}=\frac{\mbox{Dividends}}{\mbox{Net Income for the same period}}

Long Definition

Source: http://en.wikipedia.org/wiki/Dividend_payout_ratio