Calculate Payout Ratio
Payout Ratio Results
40.00%
Dividend Payout Ratio
Sustainable
Retention Ratio
60.00%
Earnings Retained
$3.00
Dividend Coverage
2.50x
Payout Sustainability Meter
0%
50%
75%
100%+
Low
Healthy
High
Unsustainable
Payout Ratio Guide
| Payout Range | Assessment | Implications |
|---|---|---|
| 0% - 30% | Low | Very safe; room for dividend increases; may indicate growth reinvestment |
| 30% - 50% | Healthy | Well-balanced; sustainable dividend with growth potential |
| 50% - 75% | Elevated | Moderately high; limited room for increases; watch earnings trends |
| 75% - 100% | High | High risk of cut if earnings decline; little retained for growth |
| 100%+ | Unsustainable | Paying more than earned; dividend cut likely without improvement |
