Percentage of earnings paid out as dividends.
Payout ratio above 80% raises sustainability concerns — leaves little buffer for downturns or reinvestment. Below 50% generally allows room for growth and protection. REITs often have high payouts due to legal distribution requirements.
Percentage of earnings paid out as dividends. Payout ratio above 80% raises sustainability concerns — leaves little buffer for downturns or reinvestment. Below 50% generally allows room for growth and protection. REITs often have high payouts due to legal distribution requirements.
In income, Payout Ratio is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.
Payout ratio above 80% raises sustainability concerns — leaves little buffer for downturns or reinvestment. Below 50% generally allows room for growth and protection.
Looking for more financial terms?
Browse Full Glossary →