The The dividend payout ratio (DPR) is a measurement of how much... More is a measurement of how much a company pays out to What are value stocks? A value company is a company that app... More in the form of dividends.
The DPR is calculated as follows:
DPR = dividends per share /
For example, if a company pays out $2 perand has $4 of earnings per share, the DPR would be 0.5 or 50%.
Applying this figure in a useful way can be difficult, because a growing company may use Money is a generally accepted medium of exchange to buy and... More to fuel further growth rather than paying it out. Companies in mature industries, on the other hand, might pay out more in dividends.