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The Most Important Statistic for Dividend Investors

Payout ratio--the dividend rate divided by earnings--can give you an idea of how well covered the dividend is, and how likely it is to grow, says Morningstar's Josh Peters.

The Most Important Statistic for Dividend Investors
Mentioned:

Jeremy Glaser: For Morningstar, I'm Jeremy Glaser. I'm joined today by Josh Peters--he's the editor of Morningstar DividendInvestor newsletter and also our director of equity-income strategy. He recently said that the payout ratio is the most important statistic for dividend investors, and he's here to explain to us why.

Josh, thanks for joining me.

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Josh Peters, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.