What is the Dividend Payout Ratio | Lumovest
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 Published On Aug 7, 2018

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The Dividend Payout Ratio

In this video, we're going to explain the concept of dividend payout ratio. The dividend payout ratio represents the portion of the company's earnings paid out to shareholders in the form of dividends. It can be calculated as:

1.Total Dividends / Net Income
2. Dividend per Share / Earnings per Share

It usually ranges from 0-100%, though occasionally, it can be a negative number when a dividend-paying company experiences an occasional negative Net Income.

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