Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
P/E Ratio Correlation to Payout Ratio
#5
Watching payout ratios is good in a general sense, but different companies in different industries can have different ratios with varying levels of safety. For instance a utility, consumer staple or REIT can comfortably carry a 60-80% payout ratio while a materials, energy, tech, or discretionary company will have a tougher time keeping that high of a ratio.

Each company needs to be looked at individually based on historical numbers, consistency of earnings, debt loads, cyclicality, etc.

I don't think a single formula can be generated to give useful results because of this.
My website: DGI For The DIY
Also on: Facebook - Twitter - Seeking Alpha
Reply


Messages In This Thread
P/E Ratio Correlation to Payout Ratio - by 800peace - 05-31-2015, 07:05 PM
RE: P/E Ratio Correlation to Payout Ratio - by benjamen - 06-01-2015, 06:58 AM
RE: P/E Ratio Correlation to Payout Ratio - by 800peace - 06-01-2015, 12:35 PM
RE: P/E Ratio Correlation to Payout Ratio - by benjamen - 06-01-2015, 12:57 PM
RE: P/E Ratio Correlation to Payout Ratio - by EricL - 06-01-2015, 01:33 PM
RE: P/E Ratio Correlation to Payout Ratio - by 800peace - 06-01-2015, 02:08 PM
RE: P/E Ratio Correlation to Payout Ratio - by 800peace - 06-01-2015, 04:13 PM
RE: P/E Ratio Correlation to Payout Ratio - by 800peace - 06-01-2015, 05:11 PM



Users browsing this thread: 1 Guest(s)