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Income Metrics

Payout Ratio

Definition

The payout ratio is the percentage of a company's earnings paid out as dividends. It indicates dividend sustainability — a very high payout ratio may not be sustainable.

Formula

Payout Ratio = Dividends Per Share / Earnings Per Share × 100

Example

A company earning $5/share that pays $2/share in dividends has a 40% payout ratio. This is generally considered healthy and sustainable. Ratios above 80% may signal risk.

Market Context

1.7% Market Average
0.0% Lowest
790.0% Highest
4657 Stocks Tracked

Live Market Data — Payout Ratio

Data as of May 19, 2026 — updates daily

# Symbol Company Payout Ratio Div Yield EPS Price
1 CXE MFS High Income Municipa… 85.37% 0.06% 0.01 3.67 USD
2 UHRN.SW The Swatch Group AG 78.00% 0.03% 0.01 40.05 CHF
3 ALLFG.AS Allfunds Group plc 34.80% 0.02% -0.26 8.50 EUR
4 COMM CommScope Holding Compan… 32.17% 0.88% 1.17 17.82 USD
5 ALHE.TA Alony-Hetz Properties & … 32.00% 0.03% 0.03 3578.00 ILA
6 PTMN Portman Ridge Finance Co… 28.01% 0.25% -0.94 12.27 USD
7 SEW.F Semperit Aktiengesellsch… 25.00% 0.04% 0.02 14.85 EUR
8 357250.KS Miraeasset Maps REIT 1 C… 24.90% 0.12% 2200.00 KRW
9 VSH Vishay Intertechnology, … 23.83% 0.01% 0.01 36.95 USD
10 BSSR.JK PT Baramulti Suksessaran… 21.93% 0.12% 598.00 4000.00 IDR

Traps & Pitfalls

REITs are required to pay out 90%+ of taxable income — a 95% payout ratio for a REIT is normal, not a warning sign. Don't apply the same 60% threshold to REITs and regular companies.

Payout ratio can exceed 100% when earnings are temporarily depressed. A company earning $1/share but paying $1.50 may be bridging a bad quarter with cash reserves — check if this is a trend or a blip.

Declining earnings inflate the payout ratio even when the dividend stays constant. A company paying $2/share on $5 EPS (40%) looks safe, but if EPS drops to $2.50 the payout ratio doubles to 80%.

Payout Ratio Calculator

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How AllInvestView Uses This

AllInvestView shows payout ratios on stock detail pages. Read our dividend growth guide to learn how payout ratios predict dividend safety.

Frequently Asked Questions

What payout ratio is sustainable?

Generally 30-60% is considered sustainable for most companies. REITs are an exception — they are required to pay out 90%+ of income. Payout ratios above 80% for non-REITs may signal risk.

Can a payout ratio be over 100%?

Yes — it means the company is paying more in dividends than it earns, funding the gap from cash reserves or debt. This is unsustainable long-term and often precedes a dividend cut.