Ayako Yoshioka CFA®, Senior Portfolio Manager at Wealth Enhancement Group was quoted by U.S. News in an article titled, “Dividend Payout Ratio: Formula, Analysis, and Purpose.”
"A high dividend payout ratio becomes problematic because it implies that a significant portion of net income is being paid out to the shareholder and not retained for reinvestment back into the business.”
For more information on the dividend payout ratio, access the full article authored by Mark Guberti here.
