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Payout Ratio, Operating income & recent Watchlist
By Rainbow Coin  •  September 10, 2019
Some metrics which I have mentioned in my previous FA posts includes ROE, dividend yield, PE, PB but one metric which I have not talked much about is Payout Ratio.

Payout ratio is an important metric that give us a feel of how sustainable would the future dividends of a company be (related: The Dividend Trap). This metric often gets overlooked because it is not a readily available ratio (unlike PE, PB, yield) on websites and requires some manual calculations. It's simple enough though, so we should really be taking it into account when making an investment decision. What it shows us is the net income that a company does not reinvest in the business, use to pay off debt, or add to its cash reserves (source: Investopedia).

Below is a screenshot from SGX website under the company's Financial data of Thaibev. From there we can see the net income for a particular

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By Rainbow Coin
I began exploring the financial world in year 2010, hoping to get out of the rat race and be financially independent. 2010 was the aftermath period of the Lehman crisis when a pretty shaken up market was struggling to recover. On hindsight, that was the perfect time to catch multi-bagger stocks should I be a veteran or at least had some basic knowledge of picking up 'gems'. My learning curve was steep then, as I have absolutely no friends or relative who could shed some light on what's investing about.
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