Payout ratio of Leaf Group Ltd.
The payout ratio is calculated by dividing the dividends paid out by the net earnings for a certain period. It is usually expressed as a percentage. The part of the earnings not paid to investors is left for investment to provide for future earnings growth. Investors seeking high current income and limited capital growth prefer companies with high payout ratio. However investors seeking capital growth may prefer lower payout ratio because capital gains are taxed at a lower rate. High growth firms in early life generally have low or zero payout ratios. As they mature, they tend to return more of the earnings back to investors.
Leaf Group Ltd., together with its subsidiaries, operates as a diversified Internet company worldwide. The company builds platforms across its marketplace and media properties to enable community of creators to reach audiences of various lifestyle categories. Its marketplaces service offering operates Society6.com, which provides artists with an online commerce platform to feature and sell their original designs on art prints and other products in the home décor, accessories, and apparel categories; SaatchiArt.com, an online art gallery featuring a selection of original paintings, drawings, sculpture, and photography that provides a global community of artists an environment to exhibit and sell their work directly to consumers worldwide; and The Other Art Fair, an art fair for artists to present and sell their work directly to art buyers. The company's media service offering comprise Cuteness.com, a community for pet owners and animal lovers; Techwalla.com, a site that provides reviews and information on technology products for your home and family; LEAF.tv, a site with content in living, eating, and fashion; Sapling.com, a source for information on personal finance; eHow, a do-it-yourself reference destination that provides practical solutions to fix, build, create, or learn problems of life; and Livestrong.com, a health and healthy living destination with library of health, fitness, lifestyle, and nutrition articles and videos. In addition, Leaf Group, through its content publishing studio, creates content for third-party publishers and brands. The company was formerly known as Demand Media, Inc. and changed its name to Leaf Group Ltd. in November 2016. Leaf Group Ltd. was founded in 2006 and is headquartered in Santa Monica, California.