Dividend Payout Ratio Calculator
Analyze payout sustainability with this Dividend Payout Ratio Calculator. Quickly compare dividends paid to net income, calculate dividends per share, estimate retention ratios, and project sustainable growth using ROE. Use this dividend payout ratio calculator to confirm your dividend stocks can maintain or grow future distributions.
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Dividend Payout Ratio Inputs
Enter total profits available to common shareholders.
Total cash returned to common shareholders.
Use weighted average shares to align with EPS reports.
Use trailing twelve month ROE to estimate sustainable growth.
Dividend Payout Ratio Results
See how much profit is distributed to shareholders and how much is reinvested for future growth.
Dividend Payout Ratio
30.0%
Retention Ratio
70.0%
Dividends Per Share
$0.72
Earnings Per Share
$2.40
Dividend Coverage (EPS ÷ DPS)
3.3x
Sustainable Growth Rate
8.4%
Conservative payout leaves room for dividend growth.
Payout vs Retention Breakdown
Visualize how much profit fuels dividends versus how much stays in the business to fund future earnings growth.
Per Share Snapshot
Compare earnings power to dividends per share. A coverage ratio above 1.5x usually signals comfortable dividend safety.
How to Read Dividend Payout Ratios
A sustainable payout ratio varies by sector. Utilities and REITs often run higher (60%+), while banks typically aim for 30-40%. Use this Dividend Payout Ratio Calculator to:
- Stress test dividend safety: Model different profit or dividend cuts to see how payout ratios respond.
- Estimate dividend growth runway: Retention ratio × ROE approximates the sustainable growth rate.
- Compare peers quickly: Input 10-K values from similar companies to benchmark payout discipline.
- Pair with the Dividend Yield Calculator: Verify that attractive yields still have earnings support.
Remember that payout ratios based on earnings can differ from cash flow payout ratios. Always cross-check with free cash flow and debt obligations for a complete view.
Disclaimer: This calculator is for educational and illustrative purposes only. Results are estimates and may not reflect actual outcomes. Investing Point does not guarantee the accuracy of these calculations and is not responsible for any decisions made based on this tool.
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