MARKETS / GLOSSARY / PAYOUT RATIO

Payout ratio

The share of profit handed to shareholders rather than reinvested. A low ratio leaves room to raise the dividend; a ratio above 100% means the company paid out more than it earned that year.

Definition

How it is computed here

Formuladividends paid ÷ net income
UnitRatio (shown as %)
PeriodOne fiscal year, as reported
SourceExtracted from SEC filings; every value on an asset page carries the accounting tag and the filing it came from
Identifierpayout
The limit

What this number does not tell you

Paying above 100% is not automatically unsustainable — a company with heavy depreciation can generate far more cash than accounting profit. Read it next to dividend coverage and free cash flow, never alone.

Every metric on this site is published with its blind spot stated. A figure without its limit is half a fact.

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In the data

Highest reported payout ratio

From the most recent fiscal year of each company.

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