Dividend Payout Ratio

The Dividend Payout Ratio is a popular measure of dividend safety. It measures the amount of earnings paid out in dividends to shareholders and is the inverse of the Dividend Cover Ratio. It is calculated as dividends per share divided by earnings per share. It is quoted as a percentage.

Stockopedia explains Payout Ratio

The Payout Ratio tells us what proportion of profits the company is paying out as dividends. If a company has £2m in profits, and pays out £1m in dividends, then the payout ratio is 50%. Investors seeking high current income and limited capital growth prefer companies with high Dividend payout ratio. However investors seeking capital growth may prefer lower payout ratio if capital gains are taxed at a lower rate. High growth firms in early life generally have low or zero payout ratios. As they mature, they tend to return more of the earnings back to investors.

As we define the Dividend from the Cashflow statement, that means that it's a negative cash-flow item so the Dividend Cover is negative and so is the Payout Ratio, so it's important to be aware of this when screening.

This is measured on a TTM basis.

Ranks: Low to HighUnit: %Available in screenerAvailable as Table Column

The 5 highest Payout Ratio Stocks in the Market

TickerNamePayout RatioStockRank™
EPA:MDMMaisons du Monde SA45551.1974
TPE:2425Chaintech Technology31530.5487
OSL:REACHReach Subsea ASA29754.8173
EPA:DKUPLAdl Partner SA28932.3579

Variants of Payout Ratio

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