6 To compute the payout ratio over the entire period, we first aggregated earnings and dividends over the entire period and then divided the aggregate dividends by the aggregate earnings. This avoids the problems created by averaging ratios where outliers (very high ratios) are common.

As with Disney, the payout ratio and the cash returned as a percent of FCFE tell you different stories. While Aracruz paid out 60.42% of its aggregate earnings over the period as dividends, the total cash returned as a percent of aggregate FCFE was in excess of 100%. Some of the dividends were clearly funded using cash accumulated at the start of the period. §2»

^ dividends.xls: This spreadsheet allows you to estimate the free cash flow to equity and the cash returned to stockholders for a period of up to 10 years.

9bl._ - divfcfe.xls: There is a dataset on the web that summarizes dividends, cash returned to stockholders and free cash flows to equity, by sector, in the United States.

Retirement Planning For The Golden Years

Retirement Planning For The Golden Years

If mutual funds seem boring to you, there are other higher risk investment opportunities in the form of stocks. I seriously recommend studying the market carefully and completely before making the leap into stock trading but this can be quite the short-term quick profit rush that you are looking for if you am willing to risk your retirement investment for the sake of increasing your net worth. If you do choose to invest in the stock market please take the time to learn the proper procedures, the risks, and the process before diving in. If you have a financial planner and you definitely should then he or she may prove to be an exceptional resource when it comes to the practice of 'playing' the stock market.

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