Free Guide to
Bookkeeping Concepts

Accounting Bookkeeping Concepts PDF Cover

Receive our free 18-page Guide to Bookkeeping Concepts (PDF) when you subscribe to our free newsletter.

You are already subscribed. This offer is not available to existing subscribers.
Step 2: Please check your email and click the confirmation link.

278,784
Subscribers

What is the dividend payout ratio?

The dividend payout ratio, or simply the payout ratio, is the percentage of a corporation's earnings that is paid out in the form of cash dividends.

The calculation of the dividend payout ratio is the cash dividends per share of common stock divided by the earnings per share of common stock.

A fast growing corporation often has a low dividend payout ratio in order to retain and reinvest its earnings in additional income producing assets.