# Payout Ratio

Dividends per share as a percentage of EPS.

## Definition

The payout ratio shows what fraction of earnings the company returns to shareholders as dividends, versus what it retains for reinvestment.

## Formula

(Dividends Per Share ÷ EPS) × 100

## Why it matters

A sustainable payout ratio depends on the business model. Mature, low-growth companies can support 60–80%+ payout ratios; high-growth companies typically pay little or nothing. Payout ratios above 100% are unsustainable — the company is paying out more than it earns.

## How Standard Equity uses it

Shown in the main financial table alongside DPS and dividend yield.

## The metric

| Category | Capital Allocation |
| -------- | ------------------ |
| Unit     | %                  |

[← Back to glossary](https://standard-equity.report/glossary)