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RE: LeoThread 2025-07-01 12:43

in LeoFinance3 months ago

Part 5/9:

  1. High Payout Ratio: The payout ratio, which denotes the share of earnings paid as dividends, provides insight into sustainability. Ratios exceeding 100% can indicate that a company is paying out more in dividends than it earns; although, in some sectors like REITs, this can differ due to inherent structural requirements.

  2. Little or Negative Cash Flow: A company should generate enough cash to uphold its dividend payouts. A lack of liquidity can be detrimental, especially if the dividends paid exceed the company's free cash flow.