What is the dividend payout ratio?
What is the dividend payout ratio? The dividend payout ratio measures the proportion of a company’s net income that is distributed to its shareholders through dividends. Formula for “Dividend Payout Ratio” = (Total Dividends Paid / Net Income) × 100% Dividend payout ratio can also be calculated as follows: Dividend Payout Ratio = (Dividend Per Share (DPS)/ Earnings Per Share (EPS))…