What is Dividend Ratio?
Dividend ratio is the ratio between the number of dividends paid and the net income of the organization. In other words, the dividend ratio is the total amount of dividends that an organization pays to shareholders relative to its net income.
The dividend declared by a company depends upon various factors that are shown in the image below:
How to Calculate Dividend
Dividend per share is calculated using a simple method. To calculate DPS, divide the total number of dividends paid by the company by the total number of shares held. The annual dividend is the total dividends given out during the year.
In this article, we will discuss how to calculate dividends along with the basic information of the dividend. We will also discuss the dividend formula and provide some examples of how to calculate dividends. Let’s start our learning on “How to Calculate Dividend.”
Table of Content
- What is Dividend Ratio?
- What is Dividend Yield?
- Formula and Calculation of Dividend Payout Ratio
- Formula and Calculation of Dividend Yield
- What is Difference Between the Dividend Payout Ratio and Dividend Yield?