Dividend Payout Ratio

What does it Mean? 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.

Terms Related Links

Cum Dividend
Declaration Date
Dividend
Earnings per Share
Ex-Date
Ex-Dividend
Holder of Record
Record Date
Retention Ratio

Terms Related Links
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How do I find dividend-paying stocks?

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