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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- 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
History
- Jun 4, 2018
- Tool Launched
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