Dividend Payout Ratio Calculator

Assess the sustainability of a company's dividend payments.

Financials

Annual Dividend Per Share ($)

Earnings Per Share (EPS) ($)

Payout Analysis

Dividend Payout Ratio37.5%Sustainability: Safe

About this calculator

Overview

The Dividend Payout Ratio measures the percentage of net income that is distributed to shareholders in the form of dividends.

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Pro Tips

< 60%: Safe & Sustainable. Reasonable for most companies. Allows room for reinvestment and growth.
60% - 85%: Wait & See. Common for mature companies (Utilities, Telecoms) with stable cash flows, but leaves little margin for error.
> 85%: Warning Signs. High risk of a dividend cut if earnings drop. The company is paying out nearly everything it earns.

Fun Facts

Formula: Payout Ratio = (Dividend Per Share / Earnings Per Share) × 100