Dividend Payout
Categories: Stocks, Metrics, Muni Bonds, Board of Directors
The dividend payout is the total amount a company is handing out in dividends to its stockholders. To do that, it will usually have to tally up the payout ratio to decide whether there's enough cash to pay for the dividends. The ratio can be calculated with one handy formula:
payout ratio = dividend payout/earnings
Example
A company has $100 million in profits. It pays dividends of $65 million. Its payout is $65 million. Its payout ratio is 65%.