{"id":4062,"date":"2023-03-08T07:50:16","date_gmt":"2023-03-08T07:50:16","guid":{"rendered":"https:\/\/fisdomdevel.wpengine.com\/glossary\/dividend-payout-ratio\/"},"modified":"2023-03-08T07:50:16","modified_gmt":"2023-03-08T07:50:16","slug":"dividend-payout-ratio","status":"publish","type":"post","link":"https:\/\/www.fisdom.com\/glossary\/dividend-payout-ratio\/","title":{"rendered":"Dividend Payout Ratio"},"content":{"rendered":"<p>\nThe Dividend Payout Ratio or simply \u2018Payout Ratio\u2019 is the ratio of the dividends paid out to shareholders in comparison to net income of the company. It is calculated as a percentage of a company&#8217;s earnings paid to shareholders in the form of dividends. As dividend is paid from the retained earnings or surplus of the company, the balance amount can be used to pay off its debt or to reinvest in its business.<\/p>\n<h2>Calculation of Dividend Payout Ratio<\/h2>\n<p>Calculation of Dividend Payout Ratio<br \/>\nDividend Payout Ratio is calculated as the yearly dividend per share relative to the EPS:<br \/>\nDividend Payout Ratio = Dividend per Share\/Earning per Share (EPS)<\/p>\n<p>Or<br \/>\nthe Dividends paid divided by the company\u2019s Net income: <\/p>\n<p>Dividend Payout Ratio =  Dividend Paid\/Net Income<\/p>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>The Dividend Payout Ratio or simply \u2018Payout Ratio\u2019 is the ratio of the dividends paid out to shareholders in comparison to net income of the company. It is calculated as a percentage of a company&#8217;s earnings paid to shareholders in the form of dividends. As dividend is paid from the retained earnings or surplus of [&hellip;]<\/p>\n","protected":false},"author":67,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[11],"tags":[],"class_list":["post-4062","post","type-post","status-publish","format-standard","hentry","category-stocks"],"_links":{"self":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4062","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/comments?post=4062"}],"version-history":[{"count":0,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4062\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/media?parent=4062"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/categories?post=4062"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/tags?post=4062"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}