In the following video, Motley Fool financials analyst Matt Koppenheffer takes a question from a Fool reader, who writes, "I would like to know more about the payout ratio and how to realize a company is in danger of paying their dividend. I always hear that 75% is the high limit but I see many companies still able to make dividend payments with 200% payout ratio."
David Hanson and Matt Koppenheffer have no position in any stocks mentioned. The Motley Fool recommends Procter & Gamble. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.