# 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.

Dividend Payout Ratio (%):
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#### Background Information

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
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