A high Payout ratio implies low price Volatility, all other things being equal. A low Payout ratio will result in capital gains, which will be realised by selling the Shares. At the same time, the Share price of a company that pays out all its Earnings in dividends will behave much like the price of a Bond.

(See Chapter 38 Share issues of the Vernimmen)

To know more about it, look at what we have already written on this subject