The ratio of dividends to earnings available for shareholders is called the Dividend Payout Ratio. And this Dividend Payout Ratio Calculator makes this calculation easier. The earnings that the company has left over after the dividend payment are retained for the purpose of reinvestment. And we call it retained earnings. Therefore, the Retention ratio can be calculated by subtracting the dividend payout ratio from 1 (total earnings).
For calculating the dividend payout ratio, we divide DPS (Dividend Per Share) by EPS (Earnings Per Share). Hence the formula can be represented as:
| Dividend Payout Ratio = Dividend Per Share / Earnings Per Share |
Dividend Payout Ratio Calculator
How to Calculate Using a Calculator?
The calculator quickly provides the result of the calculation by entering the following details into it:
Dividend Per Share – It is the amount of dividend paid to shareholders. However, it does not include the dividend paid to preference shareholders. We can calculate dividends per share by dividing the total dividends distributed among equity shareholders by the total number of equity shares.
You can take the help of our calculator for DPS calculation – Dividend Per Share Calculator.
Earnings Per Share – Earnings per share are the net earnings per share after paying off all the expenses and taxes. And we can calculate it by dividing net income less preference dividend from the average number of outstanding equity shares.
You can take the help of our calculator for EPS calculation – Earning Per Share Calculator.
Excel Calculator – Dividend Payout Ratio
You can also download our excel based calculator for Dividend Payout Ratio.
Excel Calculator for Dividend Payout Ratio (31 downloads )