What Does Dividend Payout Ratio Mean?

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What does Dividend Payout Ratio mean? Read on to discover the definition & meaning of the term Dividend Payout Ratio - to help you better understand the language used in insurance policies.

Dividend Payout Ratio

Dividend Payout Ratio

The dividend payout ratio is the fraction of a company's net income that it pays to its stockholders in the form of dividends. The remaining income is kept by the company to pay off its debts or to reinvest, often to bolster core operations.

We hope the you have a better understanding of the meaning of Dividend Payout Ratio.

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