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AppleNVIDIABerkshireMetrics guide
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AppleNVIDIABerkshire
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Metrics guide›Per share and payouts

Payout ratio

Share of profit paid out as dividends.

Worked example · a round-number company

Dividends$200M÷Net income$500M=Payout ratio40.0%

How to read it

↕Neither higher nor lower is better. Lower leaves room to keep paying in a bad year; over 100% means paying out more than the company earns.

Example Co. 40.0%
Under 30%30% to 70%Over 70%

Mature companies often pay 30–60%; growth companies pay little or nothing.

Keep in mind

  • Blank when profit is zero or negative.

Related

Dividend yieldEarnings per share (EPS)