From 1882 to 1906, Standard paid out $548,436,000 in dividends at 65.4% payout ratio.

"Even if earnings are lower next year, I think you'll see an improvement in dividends because the payout ratio is way behind."

Other things being equal, shouldn't a company's stock become less attractive when it has a lower dividend payout ratio?

This benefit should more or less offset the negative impact of the lower payout ratio, they said.

"The payout ratios may be too high and they might have to cut their dividend."

For smaller growth companies, the average payout ratio can be as low as 10%.

In previous years, the payout ratio had been considerably higher.

The important result is that in an uncertain world companies like to maintain a stable payout ratio over the long run.

Last year, the industry average payout ratio was 86%.

Higher payout ratios are supposed to be followed by lower earnings growth.