You know they don't do quarterly dividends right? Based on only two analyst estimates, they are expected to earn 1.04 EPS. If they pay the 1.26 dividend, that will be a ratio of 120% or so. Again, that's if TWO analyst mean estimate is right on, which is usually never the case, and that's if their annual dividend remains the same. I honestly wouldn't be too upset if the dividend is 80 cents to tell you the truth at the price I got my shares at. Payout ratio isn't everything either, free cash flow is more important. Last year was a gain of 826 million dollars AFTER dividend were payed. DT has a little over 3 billion dollars on hand. Lets just say it's safe to say that DT will be paying a dividend that's over 7% this year.
Thanks so much. I friend of mine owns a lot of shares and asked me what I thought about the safety of the yield--I immediately saw the huge payout ratio posted in Yahoo Finance and warning bells went off. Thanks for enlightening us and for the vote of confidence in the yield.