How to Avoid Loss and Earn Consistently in the Stock Market: An Easy-To-Understand and Practical Guide for Every Investor

by Prasenjit Paul

Higher dividend payout is another symbol of shareholder friendly management. However, don’t consider dividend payout number in isolation. A capital intensive business that requires higher investment may opt out to pay dividends for maintaining the growth. Higher dividend payout ratio with increasing dividend rate confirms shareholder’s friendliness of management.