when comparing the two measures of dividends it s important to know that the dividend yield tells you what the simple rate of return is in the form of cash dividends to shareholders but the dividend payout ratio represents how much of a company s net earnings are paid out as dividends 
the bottom linesome companies decide to reward their shareholders by sharing their financial success this happens through dividends which are paid at regular intervals to shareholders throughout the year the dividend payout ratio is the total amount of dividends that companies pay to their eligible investors expressed as a percentage 