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'''Dividend payout ratio''' is the fraction of net income a firm pays to its stockholders in dividends:
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<math>\mbox{Dividend payout ratio}=\frac{\mbox{Dividends}}{\mbox{Net Income for the same period}}</math>
 
The part of the earnings not paid to investors is left for investment to provide for future [[earnings growth]]. Investors seeking high current income and limited capital growth prefer companies with high Dividend payout ratio. However investors seeking capital growth may prefer lower payout ratio because capital gains are taxed at a lower rate. High growth firms in early life  generally have low or zero payout ratios. As they mature, they tend to return more of the earnings back to investors. Note that dividend payout ratio is calculated as [[dividends per share|DPS]]/[[earnings per share|EPS]].
 
According to Financial Accounting by Walter T. Harrison, the calculation for the payout ratio is as follows:
 
Payout Ratio = (Dividends - Preferred Stock Dividends)/Net Income
 
The [[dividend yield]] is given by [[earnings yield]] times DPR:
<math>
\begin{array}{lcl}
\mbox{Current Dividend Yield} & = & \frac{\mbox{Most Recent Full-Year Dividend}}{\mbox{Current Share Price}}    \\
        & = & \frac{\mbox{Dividend payout ratio}\times \mbox{Most Recent Full-Year earnings per share}}{\mbox{Current Share Price}} \\
        \end{array}
</math>
 
Conversely, the [[P/E ratio]] is the Price/Dividend ratio times the DPR.
 
==Impact of buybacks==
 
Some companies  chose stock buybacks as an alternative to dividends, in such cases this ratio becomes less meaningful. One way to adapt it using an augmented payout ratio:<ref>http://pages.stern.nyu.edu/~adamodar/ Financial Ratios and Measures</ref>
 
Augmented Payout Ratio = (Dividends + Buybacks)/ Net Income for the same period
 
==Historic Data==
 
The data for '''S&P 500''' is taken from<ref>http://www.eatonvance.com/mutual_funds/dividend_story.php The Dividend Story</ref> {{dead link|date=February 2013}}. The payout rate has gradually declined from 90% of [[operating earnings]] in 1940s to about 30% in recent years.
 
{| class="wikitable"
|-
! Decade || Price %<br />Change || Dividend<br />Contribution || Total<br />Return || Dividends as %<br />of Total Return || Average<br />Payout
|-
|1930s || -41.90% || 56.00% || 14.10% || N/A || 90.10%
|-
|1940s || 34.8 || 100.3 || 135.1 || 74.20% || 59.4
|-
|1950s || 256.7 || 180 || 436.7 || 41.2 || 54.6
|-
|1960s || 53.7 || 54.2 || 107.9 || 50.2 || 56
|-
|1970s || 17.2 || 59.1 || 76.3 || 77.5 || 45.5
|-
|1980s || 227.4 || 143.1 || 370.5 || 38.6 || 48.6
|-
|1990s || 315.7 || 95.5 || 411.2 || 23.2 || 47.6
|-
|2000s || -15 || 8.6 || -6.4 || N/A || 32.3
|-
| colspan=6 |
|-
|Average || 106.10% || 87.10% || 193.20% || 50.80% || 54.30%
|}
For '''smaller, growth companies''', the average payout ratio can be as low as 10%.<ref>http://www.barra.com/Research/Fundamentals.aspx S&P/Barra Indexes -- Fundamentals</ref>{{dead link|date=February 2013}}
 
==See also==
*[[Dividend]]
*[[Dividend yield]]
*[[Liquidating dividend]]
*[[Special dividend]]
*[[Sustainable growth rate]]
*[[Retention ratio]]
 
==References==
{{reflist}}
 
{{Financial ratios}}
 
[[Category:Dividends|Payout ratio]]
[[Category:Financial ratios]]

Revision as of 03:21, 17 February 2014

The coffee cherry is not a valued fruit; only its vegetable is necessary. This vegetable is old, then roasted, surface and finally brewed to satisfy more than 400 million coffee drinkers global.

There are two colors, red and green. The red has more aroma,...

Beans production is a global market, second equal moneywise to oil. It is 2,000 years of age. You can find two major types of beans, arabica, first produced on the Arabian Peninsula, and robusta with double the caffeine.

The coffee cherry isn"t a respected fruit; only its bean is required. This vegetable is aged, then roasted, surface and eventually brewed to meet more than 400 million coffee lovers worldwide.

You will find two colors, red and green. The red has more scent, lower acidic levels and produces greater coffees. This factor is critical.

The majority of beans are picked manually, but only as fast as just three-ish baskets every day. They are skilled at breaking up green and red beans, and our final product is influenced by their skill.

Once picked, the good fresh fruit is separated from the cherry. The good fresh fruit is then applied mechanically, scrubbed and soaked. Then they are cleaned to get rid of excess deposit. The beans are dried on concrete or rock typ-e foundations until they contain only 12-volts in their original water content - fermentation.

They are sorted primarily by machine. Some are rejected. The others are easily rubbed to remove the skin. The beans are then aged for 3 to 8 years. The remainder will be roasted within the season. Visiting [http://gamingportal.org/?p=572 Gaming Portal � Blog Archive � Sit Back and Relax on Adirondacks] maybe provides cautions you might use with your brother.

The beans double in size because they are roasted (400 F), to give the varied flavors. They crack, dry and go brown, releasing their flavorsome oils.

Varied strategies ensure correct roasted. Kenya and Java beans enjoy a light roasted, by way of example. The beans release carbon dioxide gas for a few days or by being packed into perforated shipping bags.

2-3 weeks later, the beans are ground. Big burrs (mills) crush them into a granule. Teeth make a less even granule. Turkish coffee is manufactured by pounding the beans in to a fine powder. Browsing To junior 3 foot bean bag chair perhaps provides suggestions you should give to your aunt.

Whatever granules you choose, brewing could be the last step. Better brewing machines create a better walk. You can find four processes involved. These generally include the ability, the amount of force, the gravity, and the boiling to extreme.

Boiling water is rushed through the coffee grounds, filtered and resolved. For coffee, the pressure of the just below boiling point water as it is forced through the causes is imperative. With the common drip coffee makers, the level of gravity of the hot water as it drips on the grounds and through the filter is important. The process depends on large bags of granules, like large tea bags. The higher the perforations within the case, the quicker the new water may enter and produce the cup of coffee. Identify extra resources on this related paper by clicking What"s The Difference Between a Vinyl Outdoor Rocking Chair and a Plastic One? | DSB.

The sometimes laborious and long journey the beans takes from mountainous or jungle regions global to the grounds in your shops, is worth the wait. The ultimate product is one which is valued global. New research is examining the pros and cons of coffee drinking, reasonable being the top. It is another reason why coffee is so well loved..

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