The dividend amount divided by the earnings per share amount is referred to as the dividend
A. yield.
B. per share.
C. payment.
D. payout.
E. declaration.
Ans :
D. Payout
The dividend payout measures the percentage of net income that is distributed to shareholders in the form of dividends during the year. In other words, this ratio shows the portion of profits the company decides to keep to fund operations and the portion of profits that is given to its shareholders.
Investors are particularly interested in the dividend payout ratio because they want to know if companies are paying out a reasonable portion of net income to investors.
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