Dividend aristocrats with very low payout ratio (below 30%)
What dividend aristocrats have the lowest payout ratio? What is the payout ratio and why is it important when investing in dividend stocks? The payout ratio is the percentage of a company's net income that is paid out to shareholders in the form of a dividend.
For example, a payout ratio of 50% means that for every dollar in net income a company generates, 50% is being paid out to shareholders as a dividend.
A high payout ratio is not always a bad thing. In some cases a high payout ratio can be very normal. For example, in industries like energy, utilities, consumer defensive, telecommunication it can be very common for a company to have a very high payout ratio. These companies also generally tend to have a higher starting yield and are generally referred to as value stocks. Companies with a high payout ratio tend to grow their dividend at a slower pace.
A low payout ratio is more common in growth companies. For example companies like Visa, Microsoft, Nvidia, and Costco all pay a dividend but have a much lower payout ratio. Companies with a lower payout ratio tend to grow their dividend at a faster pace.
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WST
SHW
TGT
SWK
SPGI
ROP
PNR
NUE
LOW
EXPD
DOV
CB
BDX
AFL
I'm not a financial advisor and the content discussed today is merely my opinion and intended only for your entertainment. The content expressed in this video should not be considered as professional financial advice. Some of the links above are affiliate links and come at no cost to you.
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