Dividend Payout Ratio
The percentage of earnings paid to shareholders in dividends.
Calculated as:
Investopedia Says:
The payout ratio provides an idea of how well earnings support the dividend payments. More mature companies tend to have a higher payout ratio.
In the U.K. there is a similar ratio, which is known as dividend cover. It is calculated as earnings per share divided by dividends per share. Related Terms:
Cum Dividend
Declaration Date
Dividend
Earnings per Share
Ex-Date
Ex-Dividend
Holder of Record
Record Date
Retention Ratio |