Payout ratio

The share of earnings paid out as dividends.

How to read it

Above 100% the dividend is paid from something other than this year's profit.

How to use it

Shows how safe a dividend is — and how much room it has to grow.

In Kereon

Kereon shows this figure as its data vendor publishes it and does not recompute it, so the vendor's exact inputs — which period's earnings, which balance sheet, which adjustments — are not visible here. The calculation above is the standard definition.

Also called: payout ratio.

Related terms

The whole glossary · Investing tools