What is a Dividend Payout Ratio?

The dividend payout ratio is calculated by dividing dividends paid by earnings after tax and multiplying the result by 100%. It represents how much of a company’s earnings after tax are paid to shareholders.

For example, an accountant reviews the Dividend Payout Ratio to assess the company's financial health and prepare for tax season.

Conçu pour les entreprises. Soutenu par l'expérience.