# Dividend Payout Ratio Calculator

Oct 24, 2018

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
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