Dividend Payout Ratio Calculator
The payout ratio measures how much of a company's earnings it hands back as dividends. It is the first thing to check before trusting a dividend.
Dividend payout ratio50.00%
Retention ratio (reinvested)50.00%
VerdictHealthy: balances payout and reinvestment
A payout ratio above 100% means the company pays out more than it earns — usually funded by debt or reserves. 30–60% is typically the healthiest range.
Estimates only, not financial advice. Dividend yields and growth rates are assumptions, not guarantees of future results. Always consult a qualified financial professional before investing.
What the number means
- Below 30% — low: the company retains most earnings, so dividends have room to grow.
- 30–60% — healthy: meaningful payout with room to reinvest.
- 60–100% — high: little room for growth; a cut could hurt.
- Above 100% — the company is paying out more than it earns, often funded by debt or cash reserves. Usually unsustainable.
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