Скачать или смотреть Dividend Payout Ratio (Example, Formula) | Calculate Dividend Payout

In this video on Dividend Payout Ratio, we discuss what is Dividend payout ratio, its formula along with practical examples and calculations.

𝐖𝐡𝐚𝐭 𝐢𝐬 𝐃𝐢𝐯𝐢𝐝𝐞𝐧𝐝 𝐏𝐚𝐲𝐨𝐮𝐭 𝐑𝐚𝐭𝐢𝐨?
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Dividend payout ratio is the percentage of Dividends to the Net profit of the company. This ratio signifies how much the company is paying dividends. As an example, Colgate's Dividend Payout ratio was 62% in 2016-17.

𝐃𝐢𝐯𝐢𝐝𝐞𝐧𝐝 𝐏𝐚𝐲𝐨𝐮𝐭 𝐑𝐚𝐭𝐢𝐨 𝐅𝐨𝐫𝐦𝐮𝐥𝐚
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There are two formulas for Dividend payout ratio -

1 ) Dividend Payout Ratio Formula = Dividends / Net Income

2) Dividend Ratio Formula = 1 – Retention Ratio

Here, retention ratio is Retained Earnings / Net Income

There are many companies that do not pay dividends like Amazon, Google, and Berkshire Hathway haven’t paid a penny to the shareholders via Dividends. The reason for the same is that they believe that instead of distributing its earnings to the shareholders, they can generate a higher value by reinvesting the profits into the business.

𝐃𝐢𝐯𝐢𝐝𝐞𝐧𝐝 𝐏𝐚𝐲𝐨𝐮𝐭 𝐑𝐚𝐭𝐢𝐨 𝐄𝐱𝐚𝐦𝐩𝐥𝐞 𝐨𝐟 𝐀𝐩𝐩𝐥𝐞
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Let us have a look at the dividend payout ratio example of Apple.
Apples Dividends (2012) = $2.49 bn
Apples Dividends (2013) = $10.56 bn
Apples Dividends (2014) = $11.13 bn
Apples Dividends (2015) = $11.56 bn
Apples Dividends (2016) = $12.15 bn

Apples Net Income (2012) = $41.73 bn
Apples Net Income (2012) = $37.04 bn
Apples Net Income (2012) = $39.51 bn
Apples Net Income (2012) = $53.39 bn
Apples Net Income (2012) = $45.69 bn

Dividend Payout Ratio (2012) = 5.97%
Dividend Ratio (2013) = 28.51%
Dividend Ratio (2014) = 28.17%
Dividend Ratio (2015) = 21.65%
Dividend Ratio (2016) = 26.59%

You can learn more about 𝐃𝐢𝐯𝐢𝐝𝐞𝐧𝐝 𝐏𝐚𝐲𝐨𝐮𝐭 𝐑𝐚𝐭𝐢𝐨 in this detailed article here - https://www.wallstreetmojo.com/divide...

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