Negative retention rate

Q & ACategory: QuestionsNegative retention rate
BRYAN asked 9 years ago

Hi Peter,was doing stock analysis for Digi and found that most of the year the retention rate is negative due to high dividend pay out ratio which is more than 100%.I followed your advice and try to find the average for the dividend pay out ratio for longer period of years and still the retention rate is still negative(i calculated the dividend payout ratio from year 2006 to 2014) Hence my questions are
1.If we face this kind of problem,what should we do with our analysis for growth assumption
2.ROE for DIGI is so high and will it affect the growth assumption using the formula of ROE x RETENTION RATE
3.Is it ok for me to email you my stock analysis for you to have a look,since i might be wrong in term of formula or some other errors in my analysis as i am still a beginner in stock investing and bursamethod is the first investment course i join? THanks