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- Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.A dividend is the portion of the profit that the company shares with its shareholders, and the formula to calculate dividend payout is the percentage ratio of this dividend paid to the shareholders to the net profit for the year. Here’s this formula – Dividend Payout Ratio = Dividends/Net Ratiowww.wallstreetmojo.com/dividend-payout-ratio-for…
To calculate the dividend payout ratio, follow these steps:
- Find the net income within the income statement.
- Find the total dividends in the financing activities section of the cash flow statement.
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