The Finance Owl

Banks – Loans – Mortgages – Money

Make Sure You Understand Your Dividend Ratios

Posted by admin January - 15 - 2009 - Thursday

It is almost the season of dividend declarations and year-end accounts so make sure that you understand your dividend ratios. It is important for investors to quickly analyze the dividend ratios as soon as a dividend is declared.

Understanding dividend ratios can give the investor an insight into the decision making approach being taken by the board of directors, it can also give indications of any change in dividend policy. Two important dividend financial ratio calculations to understand are the dividend per share ratio and the dividend yield ratio.

In addition to these two key dividend financial ratios it is also important to be able to carry out a broader range of financial ratio analysis.

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