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Is the Dividend Payout Ratio Sustainable?
The average dividend payout ratio in the s n p 500 was about 57 %, which is not too bad. But anything above that, i think you should start getting a little concerned about whether that dividend payout is sustainable. And then after that, looking out the payout ratio, look at earnings and earnings per share. As long as the company is kind of growing its earnings over time, it's a good bet that that dividends going to continue being paid.