Equity Valuation
Dividend Payout Ratio
Definition
What is Dividend Payout Ratio?
Dividends paid to ordinary shareholders divided by earnings attributable to them.
Example in practice
How This Looks in Practice
A company paying ₦3 of its ₦5 EPS has a 60% payout ratio.
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Related Terms
Equity Valuation
Earnings Per Share
Net income attributable to ordinary shareholders divided by weighted average ordinary shares.
Equity ValuationDiluted Earnings Per Share
Earnings per share assuming potentially dilutive securities convert into ordinary shares.
Equity ValuationBasic Earnings Per Share
Earnings per share calculated using actual weighted average ordinary shares outstanding.
Cash Flow AnalysisOperating Cash Flow
Cash generated or used by a company's core operations.