Q: This is a followup question for my question from last week about payout ratios.
I understand your reasons for using cash flow over earnings to calculate payour ratios. Thanks for clarifying. But when I use your posted numbers to calculate it for ENB, I get:
Payout ratio = Dividend / cash flow
= Dividend / (Price / Price to cash flow)
=2.684 / (46.69/9.7)
= 56%
But, in the question I asked previously, you stated 37% was the payou ratio for ENB. It was correct for BCE, however (3.02/(54.57/6.5)=36%). I guess I am not calculating it correctly.
How do you calculate your payour ratios based on cash flow?
Also, since it is such an important number that others don’t use (based on cash flow) could you include it in your company profile?
Thanks again,
Fed
I understand your reasons for using cash flow over earnings to calculate payour ratios. Thanks for clarifying. But when I use your posted numbers to calculate it for ENB, I get:
Payout ratio = Dividend / cash flow
= Dividend / (Price / Price to cash flow)
=2.684 / (46.69/9.7)
= 56%
But, in the question I asked previously, you stated 37% was the payou ratio for ENB. It was correct for BCE, however (3.02/(54.57/6.5)=36%). I guess I am not calculating it correctly.
How do you calculate your payour ratios based on cash flow?
Also, since it is such an important number that others don’t use (based on cash flow) could you include it in your company profile?
Thanks again,
Fed