The dividend payout ratio is used for which kind of evaluation?

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The dividend payout ratio is a measure of the percentage of earnings paid out to shareholders in the form of dividends. This is important for evaluating shares in a company from an investor's perspective, as it indicates how much of the profits are being distributed to shareholders. It does not directly relate to a company's ability to pay its current or non-current liabilities, nor does it provide information about overall profitability.

The Dividend Payout Ratio Is Used for Which Kind of Evaluation