Valuation
What is Dividend Payout Ratio?
The payout ratio shows what percentage of earnings a company distributes as dividends, revealing whether it prioritizes returning cash to shareholders or reinvesting for growth.
Formula
Payout Ratio = Dividends Per Share ÷ Earnings Per Share × 100
How to Interpret
High payout (>70%) means less retained for growth. Low payout (<20%) means the company reinvests heavily. Sustainable dividends require payout ratios well below 100%.
Typical Ranges
30-60% is balanced. Above 80% may be unsustainable. Below 15% suggests the company prefers reinvestment.
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter US or Indian stocks by Dividend Payout Ratio.