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The Dividend Guy Blog

Unconventional Lifestyle and Dividend Growth Strategy

payout ratio

Understanding Payout Ratios: Is the Dividend Safe?

Blog, Stock Analysis

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 bad use of the payout ratio. Yes, the payout ratio is a valuable indicator of dividend sustainability. But you can’t take a number from a stock screener or finance site and draw a …

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Things We Believe That Aren’t True [Podcast]

Blog, Podcast

Strong beliefs in the investment world guide many investors' portfolios. The problem is that many of them are not true. It's time to destroy misconceptions about payout ratios, PE ratios, dividend history, and volatility. Define Your Strategy and Invest with Conviction. Download the Portfolio Workbook for free. You'll Learn What is the dividend payout ratio? What does it tell us? A strong belief is that a Good Payout Ratio is under 80%. Why is this a misconception? To illustrate …

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