Dividend Payout Ratio
Determine what percentage of earnings is distributed to shareholders as dividends.
CalcSimpler Examples
- Dividends 2, earnings 5 ⇒ 40%
- Dividends 3, earnings 6 ⇒ 50%
FAQ
What does the payout ratio show?
It shows the share of earnings paid out as dividends.
Can I use net income?
Yes, earnings typically refer to net income.
What if earnings are zero?
The ratio becomes undefined or infinite.
Is the result a percentage?
Yes, the ratio is expressed as a percentage.
Additional Information
No additional information available.
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