Brett

dividends payments from earnings

Dividend Payout Ratio — How to Analyze and Interpret Dividends Like a Pro!

The Dividend Payout Ratio is the relationship between the size of the dividend payment and the earnings of a company. Expressed as a percentage, a higher percentage means more of its earnings is going towards paying a dividend to shareholders. If the Dividend Payout Ratio is too high, then that leaves little left over for companies to reinvest back into the business. The Sustainability or “Health” of a dividend can be interpreted by the Dividend Payout Ratio.