Lower payout ratios mean safer dividends, and
high payout ratios mean that the dividends have a high probability of being cut.
The company maintains a
fairly high payout ratio as it returns much of its cash flows to shareholders in the form of dividends.
The company maintains a fairly
high payout ratio as it returns much of its cash flows to shareholders in the form of dividends.
Back when they were regulated, utilities could
offer high payout ratios since public utility commissions guaranteed profits.
As long as the company continues to retain its tenants and continue collecting monthly rent payments, the
relatively high payout ratio shouldn't be an issue.
While this would be a relatively
high payout ratio for many types of businesses, Digital Realty has generated very stable earnings and growth since it went public.
The first, OneBeacon Insurance Group, Ltd. (OB) which currently yields a very high 5.50 % with a moderately
high payout ratio of 74.3 %.
However, most regulated utility companies are able to
maintain higher payout ratios without jeopardizing their dividends because they generate such stable earnings.
Similarly for gender, a Credit Suisse study found that companies with higher female representation at the board level or in top management exhibit higher returns on equity, higher valuations and
also higher payout ratios.
Typically 7 years since the initiation, I think end of year will bring a major correction with 2 years of bear market, I'm also starting to see a lot of dividend paying stocks
approaching high payout ratios so it will be interesting to see how it plays out in the downturn — nothing goes up forever, we are due for a major haircut
Higher chances of generating profit can also be witnessed
by higher payout ratios for options, like TOUCH and RANGE and longer expiration time period.
Depending on the investors tax rate, paying out dividends in Australia can therefore be more efficient than retaining profits and explains the relatively
high payout ratios of Australian companies.
Utility companies can have
relatively high payout ratios, compared to most businesses, because their financial results are usually stable as a result of their monopoly and regulated status.
While there is a risk BEP doesn't match my assumption due to
the high payout ratio, I still consider this number as the company showed more commitment to increase its payouts than keep its FFO payout ratio in order.
IBM has
the highest payout ratio, as a percentage of trailing -12-month free cash flow, among these six companies.
With the remaining high yielding stocks, we will eliminate 50 % with
the highest payout ratio.
With the remaining high yielding stocks we eliminate half with
the highest payout ratio.
A high payout ratio might indicate that the company is struggling to maintain the dividend and might need to cut or lower it in the future.
With the remaining high yielding stocks we eliminate the half with
the highest payout ratio.
As commented above
a high payout ratio is not unexpected for a utility.
The high payout ratio doesn't surprise me considering this is a utility.
Management has successfully brought back
a high payout ratio (nearly 95 %) to a more reasonable level (68 %) and offers a 3 % yield.
The reason why I'm willing to accept
a higher payout ratio from time to time is that this ratio is far from being perfect.
This is high, but
a higher payout ratio is fairly common for a regulated utility.
So it is wise to select a broker that has
high payout ratios.
A high payout ratio may mean that the company is sharing more of its earnings with its shareholders.
In the table above, you can see that Southern also has
a high payout ratio based on earnings (84 %).
I checked with Safety Net Pro, and they stated that the rating is based on Southern's
high payout ratio of dividends to free cash flow.
But again,
high payout ratios are typical of utilities.
UHT still maintains a high yield, but
its high payout ratio and low relative dividend growth caused its overall ranking to drop.
One primary reason for
this high payout ratio Read more -LSB-...]
One primary reason for
this high payout ratio may be New Zealand's dividend imputation regime, a rarity among countries around the world.