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$12,085.50

$3,087.20

25.54%

$16,454.09

$6,389.60

38.83%

As you can see, Disney paid out 25.54% of its aggregate earnings as dividends over this period.6 Over the same period, it returned 38.83% of its FCFE to its stockholders in the form of dividends and stock buybacks. Though the payout ratio gives us little information about the company, the cash returned as a percent of FCFE suggests that Disney accumulated cash during this period. Even if we ignore the cashflows generated by debt in estimating FCFE, Disney returned only 65.91% of its FCFE to its stockholders in the form of dividends and stock buybacks.

Table 11.9 shows dividend payout ratios and cash returned to stockholders as a percent of FCFE for Aracruz from 1998 to 2003.

Table 11.9: Aracruz - Dividends as Percentage of Earnings and Cash Returned as

Percent of FCFE

Table 11.9: Aracruz - Dividends as Percentage of Earnings and Cash Returned as

Year

Net Income

Dividends

Payout Ratio

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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