Earnings Allocation

Dividend Payout Ratio
The Dividend Payout Ratio is a financial metric that shows the percentage of earnings a company pays to its shareholders in the form of cash dividends. It helps assess a company's maturity and capital allocation strategy.
Dividend Requirement
The Dividend Requirement refers to the amount of annual earnings that a company needs to allocate in order to pay dividends on its preferred stock.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.