09-22-2013, 03:25 PM
I have been burnt with dividend cuts by companies where the payout ratio has been high.
I don't buy any stock with a payout ratio greater than 0.80. In addition, my sell criteria puts heavy emphasis on payout ratio. I sell if the payout ratio gets above 1 or if the payout ratio is above 0.80 and the earnings growth rate is large negative number.
I don't buy any stock with a payout ratio greater than 0.80. In addition, my sell criteria puts heavy emphasis on payout ratio. I sell if the payout ratio gets above 1 or if the payout ratio is above 0.80 and the earnings growth rate is large negative number.