is there an ideal payout ratio 
no single number defines an ideal payout ratio because adequacy largely depends on the sector in which a given company operates companies in defensive industries tend to boast stable earnings and cash flows that can support high payouts over the long haul companies in cyclical industries typically make less reliable payouts because their profits are vulnerable to macroeconomic fluctuations the bottom linethe payout ratio is a financial metric that shows the proportion of earnings a company pays its shareholders in the form of dividends it s expressed as a percentage of the company s total earnings and is also known as the dividend payout ratio it s key in determining the sustainability of a company s dividend payment program 