How Do You Find The Dividend Payout Ratio?
The dividend payout ratio is the amount of net income that is paid out to stockholders as dividends. When a company’s dividend payouts are a constant percentage of net income, the dividend payout ratio can be calculated using the following formula: dividend payout ratio = cash dividends/net income This article demonstrates through example how to find the dividend payout ratio. Information retrieved from Yahoo Finance about Microsoft on 2/12/2010 is used. A link to Yahoo Finance is located below. Gather the information needed to find the dividend payout ratio. The ticker symbol for Microsoft is MSFT. Cash dividends can be found on the cash flow financial statement. Net income can be found on the income statement. cash dividends = $4,468,000,000 net income = $14,569,000,000 Plug the information into the dividend payout ratio. dividend payout ratio = cash dividends/net income dividend payout ratio = $4,468,000,000/$14,569,000,000 Solve to find the dividend payout ratio. dividend payout ra
