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A companys dividend record can be evaluated by looking at what percentage of net income it chooses to pay out in dividends, as measured by
A companys dividend record can be evaluated by looking at what percentage of net income it chooses to pay out in dividends, as measured by the dividend payout ratio (dividends divided by net income). Earnings performance is measured with the return on common stockholders equity (income available to common stockholders divided by average common stockholders equity.) Does anyone detect any downsides from this approach to measure earnings performance?
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