Sentences with phrase «high payout ratios mean»

Lower payout ratios mean safer dividends, and high payout ratios mean that the dividends have a high probability of being cut.

A company that pays out all of its earnings would have a payout ratio of 100 percent, while a higher payout ratio means that the company is paying out more than it is actually earning.

Not exact matches

A high payout ratio may mean that the company is sharing more of its earnings with its shareholders.

When a company's payout ratio is high, it tends also to mean the company has less money retained to weather the storms that come from time to time.

So, when investing, you not only want to invest in a company that has a high dividend, but you want to see a low payout ratio as well, since that means they are more likely to continue to be able to pay the nice dividend.

While different industries have different appropriate payout ratios, typically payout ratios higher than 70 % indicate a dividend cut may be on its way, while below 70 % means the dividend is likely sustainable and there are additional earnings to support further dividend increases.

If a company has a high dividend payout ratio, it means that it pays greater percentage of its earnings to its shareholders.

A low dividend payout ratio means that a company is returning a small portion of its earnings to investors, while a high payout ratio implies that a company uses the majority of its profit for dividends instead of for future growth.

Now, if ROA is going up you really do not need the same amount of capital in the business itself, which means that dividend payout ratios can go much higher than people think.

A consistently high payout ratio may mean the company doesn't have favorable places to invest its money for future growth of earnings and dividends.