High Dividend Payout Ratios Not Always Bad

By on August 14, 2010

Morningstar’s Josh Peters explains why companies that pay out a large percentage of their earnings as dividends are not necessarily poor investment choices. He comments on competitive position, debt levels, and capital re-investment requirements needed to keep the business running.

Peters specifically mentions Altria Group (MO) and Paychex (PAYX) as attractive stocks that pay investors a large percentage of their earnings as dividends.

Source: Yahoo Finance

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