One ratio that gets a lot of attention (and rightfully so) from investors is a stock’s payout ratio. It tells them how much of a company’s earnings are paid out in the form of dividends. Generally, the higher the ratio is, the more unsustainable the dividend is. This isn’t always the case, however. A company […]
Tag: Ratios
These 3 Dividend Stocks Yield More Than 5% but Their Payout Ratios Are Over 100%. Are Dividend Cuts Coming?
High-yielding dividend stocks can make for attractive investments given the potential income they can generate for your portfolio. But there is often a trade-off when it comes to high payouts, as high yields may not always be sustainable. One metric investors often rely on to help assess the safety of the dividend is the payout […]