Target payout ratio - A firms long-run dividend-to-earnings ratio. The firms policy is to attempt to pay out a certain percentage of earnings, but it pays a stated dollar dividend and adjusts it to the target as base-line increases in earnings occur.
Target payout ratio : a firms long-run dividend-to-earnings ratio. the firms policy is to attempt to pay out a certain percentage of earnings, but it pays a stated dollar dividend and adjusts it to the target as base-line increases in earnings occur.