No. of Recommendations: 4
there appears to be an optimal payout ratio between 40% and 60% for the high-quality subset of the U.S. equity market.

For whatever reason the link to the article didn't work for me(?) :(

All the same, I'll make the assumption that the pay-out ratio the article references is dividend/earnings per share. While the pay-out ratio is usually a reasonable yard stick with which to measure dividend health by, looking at free cash flow, and if the dividend is being paid—in its entirety—from it, often times provides a more pertinent peek at the health of the dividend.

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