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Dividend Payout Ratio Calculator

LAST UPDATE: August 24th, 2018

Calculator

What is the Dividend Payout Ratio?

The dividend payout ratio is the ratio of dividends paid to net income earned by the corporation.

A dividend payout ratio of ‘0’ means that the corporation pays no dividends.

A dividend payout ratio of ‘1’ means that 100% of net income is paid as dividends.

A dividend payout ratio of ‘0.5’ means that 50% of net income is paid as dividends.

Formula

Dividend Ratio = Dividends Paid / Net Income Earned

Example

A company pays $5,000 in dividends and has a net income of $1,000.

Dividend Ratio = $5,000 / $1,000 = 5.00

Therefore, the company has a dividend ratio of 5.00.

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