You can calculate a dividend payout ratio by dividing the dividend a company pays per share by the company's earnings per share. The normal range is 25% to 50% of earnings, though the average is higher in some sectors of the economy than in others.
Some analysts think that an unusually high ratio may indicate that a company is in financial trouble but doesn't want to alarm shareholders by reducing its dividend.
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- Debt-to-equity ratio, Forward price-to-earnings ratio, Haircut, Multiple, Overvaluation, Payout ratio, Price-to-book ratio, Price-to-cash flow, Price-to-earnings ratio (P/E), Price-to-sales ratio, risk ratio, screen, Sharpe ratio, Valuation
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