What is Payout Ratio? | Payout Ratio Explained for Beginners
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4 سال پیش
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Interested in learning about what the payout ratio of a stock is? In this video, you'll get a beginners breakdown on payout ratio, explained with graphics and examples!
Payout ratio is a measure of dividend sustainability and tells investors how big of a financial obligation the dividend payments are. The payout ratio is a percent measure of how much of the company's profits are allocated to paying dividends.
Stocks that have a low payout ratio are thought to have a more sustainable dividend. Alternatively, stocks that have a high payout ratio may be thought to have a less sustainable dividend. However, this isn't an absolute measure of sustainability, it just gives investors a glimpse of how much the dividend payments cost the company.
Payout ratios will vary from stock to stock and between market sectors. There isn't an ideal payout ratio for all stocks as each company will have different circumstances that may encourage them to have a higher or lower payout ratio. In general, growth companies are on the lower end of the scale, while mature blue-chip companies will be on the higher end of the scale.
The video is part of the Stock Market Basics playlist.
🔔 Subscribe for more videos! @rynance
🕒 Time Stamps!
00:00 Intro
00:22 Payout Ratio Explained
00:50 Calculation 1
01:24 Calculation 2
01:55 Ideal Payout Ratio
02:52 Growth vs Blue-Chip Payout Ratios
03:31 100% Payout Ratio
04:08 Finding Payout Ratio
04:44 Thanks for Watching!
💻 Check out the 'Stock Market Basics' Playlist for more videos like this!
💬 Drop me a comment if you have a question!
👍 Smash like for the YouTube algorithm!
Disclaimer
This channel is for entertainment purposes only and is not investment advice. All videos published on this channel are informational in nature and are not intended to give advice or recommendations about any particular security or investment. Before making any investment decisions, I would recommend you to speak to a financial professional that is qualified to provide advice.
Payout ratio is a measure of dividend sustainability and tells investors how big of a financial obligation the dividend payments are. The payout ratio is a percent measure of how much of the company's profits are allocated to paying dividends.
Stocks that have a low payout ratio are thought to have a more sustainable dividend. Alternatively, stocks that have a high payout ratio may be thought to have a less sustainable dividend. However, this isn't an absolute measure of sustainability, it just gives investors a glimpse of how much the dividend payments cost the company.
Payout ratios will vary from stock to stock and between market sectors. There isn't an ideal payout ratio for all stocks as each company will have different circumstances that may encourage them to have a higher or lower payout ratio. In general, growth companies are on the lower end of the scale, while mature blue-chip companies will be on the higher end of the scale.
The video is part of the Stock Market Basics playlist.
🔔 Subscribe for more videos! @rynance
🕒 Time Stamps!
00:00 Intro
00:22 Payout Ratio Explained
00:50 Calculation 1
01:24 Calculation 2
01:55 Ideal Payout Ratio
02:52 Growth vs Blue-Chip Payout Ratios
03:31 100% Payout Ratio
04:08 Finding Payout Ratio
04:44 Thanks for Watching!
💻 Check out the 'Stock Market Basics' Playlist for more videos like this!
💬 Drop me a comment if you have a question!
👍 Smash like for the YouTube algorithm!
Disclaimer
This channel is for entertainment purposes only and is not investment advice. All videos published on this channel are informational in nature and are not intended to give advice or recommendations about any particular security or investment. Before making any investment decisions, I would recommend you to speak to a financial professional that is qualified to provide advice.
4 سال پیش
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