Dividend Payout Ratio Calculator
Enter total dividends paid and net income to calculate the dividend payout ratio.
Dividend Payout Ratio Calculator
Calculate the dividend payout ratio — the share of a company's profit paid out to shareholders as dividends.
The payout ratio shows what portion of a company's net income is returned to shareholders as dividends, with the remainder (the retention ratio) being reinvested back into the business.
Example
- With the default values shown above, this calculator returns: Dividend Payout Ratio ≈ 40.00; Retention Ratio (Reinvested) ≈ 60.00.
Frequently Asked Questions
What is the formula?
Payout Ratio % = Total Dividends Paid ÷ Net Income × 100. The remainder (Retention Ratio) is the share of profit kept and reinvested in the business.
Is a high payout ratio good or bad?
It depends on the company and industry: mature, stable companies often pay out a large share of earnings, while growth companies typically retain more to reinvest. A payout ratio consistently over 100% can be a warning sign that dividends aren't well covered by earnings.