If the dividend payout is 1.2, this means the company is paying part of this period's dividends out of retained earnings.

Name: If the dividend payout is 1.2, this means the company is paying part of this period's dividends out of retained earnings.
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Question

Quizplus · Accepted Answer

A dividend payout ratio greater than 1 indicates that the company is paying more in dividends than its net income, suggesting it is using retained earnings to cover the excess.

If the Dividend Payout Is 1