Tool Slick

Dividend Payout Ratio Calculator

Dividend Payout Ratio Calculator is a tool to calculate the amount of dividends paid to the stock holders relative to the amount of net income of a firm.

All processing happens on the client-side, locally in your browser. No data is uploaded.

The dividends Amount
The net income amount
Dividend Payout Ratio
40.00%

History

  • 2018-06-04Tool Launched

Background

What does Dividend Payout Ratio mean?
The Dividend Payout Ratio is the amount of dividends paid to stockholders relative to the amount of total net income of a company.
Formula
  • Dividend Payout Ratio = Dividend per share / Earnings per share
  • OR
  • Dividend Payout Ratio = Dividends / Net income for the same period
Example

A company has declared and paid a dividend of $0.66 per share of the common stock.

  • Common stock (10,000 shares, $25 par value): $250,000
  • Net income: $22,000
  • Gross Profit: $350,000
  • OPEX: $200,000
  • Interest Expense: $50,000
  • Income Taxes: $10,000
  • Net Income: $90,000

According to the formula:-

  • = $0.66 / $2.2*
  • = 0.3 or 30%

& Earnings per share of common stock:

  • $22,000/10,000 shares