The dividend payout ratio (DPR) calculator calculates the percentage of net income that is distributed to shareholders in the form of dividends during the year.
The dividend payout ratio is the amount of dividends paid to stockholders relative to the amount of total net income of a company. The amount that is not paid out in dividends to stockholders is held by the company for growth. The amount that is kept by the company is called retained earnings.
Formula:
DPR = cash dividends ÷ Net income
where,DPR = Dividend payout ratio