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Dividend Payout Ratio Calculator

Enter dividends per share and earnings per share to compute the dividend payout ratio and retention ratio.

Input Data

Dividend Per Share
Eps

Results

37.5%
62.5%
2.67×

At a glance:The payout ratio is the share of earnings paid as dividends; the retention ratio is the remainder reinvested; dividend cover is earnings divided by the dividend.

Formula

payoutRatio = dividendPerShare / eps × 100%

retentionRatio = 1 − payoutRatio

dividendCover = eps / dividendPerShare

How to Use

  1. Enter the dividend per share (DPS).
  2. Enter the earnings per share (EPS).
  3. Review the payout ratio, retention ratio, and dividend cover.

FAQ

What payout ratio is healthy?

Mature, stable companies often sit at 40-60%; too high (above 80%) leaves too little reinvestment and limits growth, too low (below 20%) may mean the firm under-rewards shareholders. REITs and high-yield stocks can stay high for long periods by nature.

What if the payout ratio exceeds 100%?

It means dividends exceed earnings, sustained by past reserves or borrowing, and is usually unsustainable. Unless it is a one-off special dividend, watch for a cut-risk.

What if EPS is negative?

With negative EPS the ratio is meaningless (negative denominator); look at the absolute dividend and free-cash-flow cover instead of the ratio.

How is it related to P/E and dividend yield?

Dividend yield ≈ payout ratio ÷ P/E (roughly). The three move together: a high payout and a low P/E usually give a high yield. This tool gives the payout ratio; to get the yield you also need the share price.

What is the retention ratio for?

Retained earnings fund reinvestment and growth. High retention that earns a high return lifts earnings and share price over time; if management wastes it, it hurts instead.

Does a special dividend distort the ratio?

Yes — a one-off special dividend inflates DPS and makes the ratio abnormal. Separate normal from special dividends and look at the sustainable regular payout ratio.

References

Content review: Calculatorism Science Team. Results are for reference only; please refer to the relevant authorities for the official figures.

Found a problem with the results?

If this calculator's result is wrong, or you have any question about the calculation logic, please let us know. You are viewing:Dividend Payout Ratio Calculator（/finance/payout-ratio）。