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| Dividend
Payout Ratio |
= |
Yearly
Dividend per Share |
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Earnings
per Share |
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Indicates
the proportion of earnings that are used to pay dividends to shareholders.
Things
to remember |
- A
reduction in dividends paid is looked poorly upon by investors,
and the stock price usually depreciates as investors seek
other dividend paying stocks.
- A
stable dividend payout ratio indicates a solid dividend
policy by the company's board
of directors.
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[Click
on the image(s) above to see the financial statements] |
Dividend
Payout Analysis:
Cory's Tequila Co. dividend payout ratio is zero, in other words
they do not pay a dividend to its shareholders. This is the case
for most high growth firms, their profits are better spent by reinvesting
in the firms activities rather than as a cash payout to shareholders.
In fact a majority of corporations have elected to pay out less
of their earnings as dividends, perhaps because corporate rates
of return on reinvested capital are higher these days, but it could
also be that dividends are doubly taxed in some jurisdictions.
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