Red River Bancshares(Rrbi) Financials: Dividend Payout Ratio Compared To Industry Average, Plus Other Key Ratios
Valuation Trend (Last 5 Years)
Valuation - dividend payout ratio
This chart shows the historical trend of dividend payout ratio for RRBI compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Dividend Payout Ratio
Definition: The dividend payout ratio shows what portion of the company’s profits are paid out to shareholders as dividends. If it’s 60%, that means 60% goes to shareholders, while 40% is kept inside the business for future growth. High payout ratios reward shareholders today. Lower payout ratios suggest the company believes it can earn even more by reinvesting in itself.
Interpretation:
• In '2021', RRBI's dividend payout ratio was 0.06, demonstrating the portion of earnings distributed as dividends. Industry average for Hotels/Resorts in '2021' stood at 0.23.
• In '2022', RRBI's dividend payout ratio was 0.06, demonstrating the portion of earnings distributed as dividends. Industry average for Hotels/Resorts in '2022' stood at 0.16. Industry average declined by 0.06 from previous year.
• In '2023', RRBI's dividend payout ratio was 0.06, demonstrating the portion of earnings distributed as dividends. Industry average for Hotels/Resorts in '2023' stood at 0.22. Industry average increased by 0.06 compared to previous year.
• In '2024', RRBI's dividend payout ratio was 0.07, demonstrating the portion of earnings distributed as dividends. Industry average for Hotels/Resorts in '2024' stood at 0.48. Industry average increased by 0.25 compared to previous year.
Overall, RRBI's dividend payout ratio has remained generally stable over the past 4 years.
Formula: Dividend Payout Ratio = Dividends / Net Income
Good Range: Ranges widely; 30%-60% common for mature firms.