If a company's payout ratio is over 100%, it is returning more money to shareholders than it is earning and will probably be forced to lower the dividend or stop paying it altogether.
Second, the stock price volatility can greatly affect return on investment for dividend stocks.
Many investors look at the payout ratio to determine dividend safety. First, notice how dividend-paying stocks as a whole tend to outperform their non-dividend-paying counterparts over the long-haul.
A company endures a bad year without suspending payouts, and it is often in their interest to do so. Get short term trading ideas from the MarketBeat Idea Engine. See what's happening in the market right now with MarketBeat's real-time news feed. The dividend payout ratio provides an indication of how much money a company is returning to shareholders versus how much it is keeping on … Next, and more importantly, notice how companies labeled as dividend growers tend to perform even better than those that simply pay out a distribution. Export data to Excel for your own analysis.Please log in to your account or sign up in order to add this asset to your watchlist.You have already added five stocks to your watchlist. Geared toward long-term investors looking to boost current income, while maintaining a relatively low-risk profile.Being aware of a stock’s dividend history, like its historical dividend yield, and the company’s payout policy is important for a number of reasons; for starters, it may shed more light on how it will perform over the long-haul. View which stocks are hot on social media with MarketBeat's trending stocks report.Looking for new stock ideas? Reproduction of such information in any form is prohibited. Long-term trends in the payout ratio also matter. Next, enter "=B1/B2" into cell B3; the payout ratio is 11.11%. Because of the possibility of human or mechanical error by Mergent's sources, Mergent or others, Mergent does not guarantee the accuracy, adequacy, completeness, timeliness or availability or for the results obtained from the use of such information.Practice management news, reports, video and more.Learn more about planning and maintaining a happy, financially secure retirement.Retirement news, reports, video and more.Browse our massive selection of dividend stocks.Power your selection and tracking decisions with robust dividend data.Check out the securities going ex-dividend this week.Fixed income news, reports, video and more.While most dividend-paying companies will always claim that they have no plans to reduce their dividends, the results can be quite different. The dividend payout ratio is the proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage. Investors use the ratio to gauge whether dividends are appropriate and sustainable. Here's an interesting fact: if you invested in the S&P 500 ETF (SPY) on 12/31/1998, you would have paid $123.31 per share. The payout ratio depends on the sector; for example, startup companies may have a low payout ratio because they are more focused on reinvesting their income to grow the business.The payout ratio is also useful for assessing a dividend's sustainability. That result is not inevitable, however. payment date Dividend history information is presently unavailable for this company. It is the percentage of earnings paid to shareholders in dividends.
2 rival Lowe’s (LOW, $103.59) is the superior payout grower between these two DIY dividend stocks. Consider the findings below from Ned Davis Research:For starters, investors can gauge the state of the broad market by looking at the S&P 500 historical dividend yield; one way to utilize this sort of data is to focus on companies that are potentially undervalued at the time, as they happen to offer a distribution yield above that of the broad market.Have you ever wished for the safety of bonds, but the return potential...Certain financial information included in Dividend.com is proprietary to Mergent, Inc. ("Mergent") Copyright © 2014.