10 Stocks With Low Payout Ratios and High Yields

We are in the search for the winning combination of metrics in dividend stocks. We will start with two common ratios: yield and payout ratios. Do high yielding stocks produce better investing results or are they less sustainable due to the bigger payouts? What about low payout ratios vs. high earnings retention to fuel future growth? Should companies save earnings or give them back? Conflicting DataOne study presents the argument that low payout ratios are associated with lower subsequent earnings growth (Does Dividend Policy Foretell Earnings Growth, Robert Arnott and Clifford S. Asness). The concept is that management may boost payout ratios when they feel confident of future growth. Also, having less retained earnings from high payout ratios may force the business to be very judicious when considering future asset purchases. This study seems to fly in the face of other papers though. A wealth of information has been published... Read more