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Unformatted text preview: investors expect from companies. • Dividend yield: The amount of dividends a company pays out relative to it share price. (The average dividend yield on common stocks has been between 3% and 6%.) • Dividend payout ratio: The portion of earnings paid as dividends to stockholders. This estimates dividends of future years if earnings can be estimated. (Average range is from 30% to 50% although the range can vary by a lot if the company has a low earnings year but wants to maintain the dividends per share amount.)...
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- Fall '10
- Accounting, Dividend yield, P/E ratio, dividend payout ratio, average dividend yield, greater future earnings