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.
More from The Motley Fool
Procter & Gamble Co. Earnings: What to Watch
A preview of P&G's fiscal second quarter report due out on Tuesday, Jan. 23.
Here's Where Things Went Wrong for Procter & Gamble in 2017
Market share gains form the basis for P&G's operating strategy, and they just didn't materialize last year.
Meet the 2018 Dogs of the Dow
Learn the basics of this simple dividend-investing strategy.