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The dividend payout ratio, calculated by dividing dividends per share by earnings per share (EPS), measures the proportion of earnings distributed as dividends to shareholders. - A higher ratio indicates a higher return of profits to shareholders, while a lower ratio suggests reinvestment of earnings for growth. -This ratio is important for investors to assess the company's dividend policy and potential for income. - It also provides insights into the company's financial strategy and long-term growth prospects.
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