Dividend Payout Ratio. The percentage of earnings that the business pays in dividends is the dividend payout ratio. The higher the payout ratio, the less safe the dividend is because a small earnings decline would leave the dividend uncovered. But of course, the stability of the cash flows is relevant: MLPs, REITs, By looking ahead, we can identify the dividends that are likely to grow the fastest. And when we identify payouts that are poised for yearly raises of 15%, 20% or even 25% or more, we should buy those stocks and enjoy annual stock price gains in that neighborhood. Sure, Although shares may seem fully valued at 27 times earnings, investors are willing to pay up for sturdy cash cows in almost any market, making MCD one of the best dividend stocks to buy for 2020