Understanding Payout Ratios: Is the Dividend Safe?

Many investors like to keep things simple and use the payout ratio as a quick filter to determine if a company can afford to share the wealth with its shareholders. It often looks like this: Payout ratio under 80% = dividend is safe Payout ratio above 80% = dividend is unsafe That shortcut is a … Continue reading Understanding Payout Ratios: Is the Dividend Safe?