This video will teach you the Dividend Payout Ratio and why this is a critical tool for assessing the safety of a company’s dividend.

Reference Items:
►Dividend Diplomat Stock Screener: [ Ссылка ]
►Top 5 Foundation Dividend Stocks: [ Ссылка ]
►Dividend Payout Ratio: Explaining the Most Important Metric: [ Ссылка ]

The Dividend Payout Ratio:
The Dividend Payout Ratio is a crucial metric for dividend investors to use when evaluating the safety of a dividend. This metric is important for all - beginning investors to even advanced. It is the second metric in our Dividend Stock Screener for a reason!

The Dividend Payout Ratio is calculated by dividing the company’s dividends per share and dividing it by their earnings per share. We like to see companies with payout ratios between 40%-60%. This allows the company to still reinvest their earnings back into the business while rewarding shareholders at the same time. It also allows the company to grow their dividend going forward!

In this video, we calculate the dividend payout ratio of Johnson & Johnson (JNJ), one of our Top 5 Foundation Dividend Stocks.

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