Dividends ÷ net income: the share of earnings paid out to shareholders in cash.
What this ratio is
Payout ratio (Payout Ratio): dividends ÷ net income, the share of earnings paid out to shareholders in cash.
How to read it
The share of profit paid out in cash. Below 60% leaves room to grow. Above 100% the payout is funded by something other than profit.
Common mistake
No value means no dividends. That is common for growth companies and says nothing about health.
Where to see it on the platform
The fundamentals comparison page shows it for each company against the market median, under the “investment indicators” family, with five years of history and a trailing twelve-month window.
Questions about the payout ratio
What does the payout ratio mean?
Dividends ÷ net income: the share of earnings paid out to shareholders in cash.
How does the payout ratio appear on the trading platform?
It appears as "cmp:payout" (full term: Payout Ratio), which is what you see in the options chain or the order screen.
