The dividend payout ratio, calculated by dividing dividends per share by earnings per share (EPS),...
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Finance
The dividend payout ratio, calculated by dividing dividends per share by earnings per share EPS measures the proportion of earnings distributed as dividends to shareholders. A higher ratio indicates a higher return of profits to shareholders, while a lower ratio suggests reinvestment of earnings for growth. This ratio is important for investors to assess the company's dividend policy and potential for income. It also provides insights into the company's financial strategy and longterm growth prospects.
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