Dividend Payout Ratio
Calculate the Dividend payout ratio, a financial metric that measures the proportion of earnings paid out as dividends to shareholders.
The payout ratio is a financial metric that helps investors assess the portion of a company’s earnings that is being distributed to shareholders in the form of dividends. It’s a valuable indicator for dividend investors as it indicates the sustainability of dividend payments and the company’s approach to distributing profits.
The formula is as follows:
\[\text{Dividend Payout Ratio} = \text{Dividends Paid} / \text{Net Income}\]Also known as: payout ratio.
Dividend Payout Ratio in Python
get_dividend_payout_ratio is part of the Ratios module of the open-source Finance Toolkit. Install it with:
pip install financetoolkit -U
Then call get_dividend_payout_ratio as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")
toolkit.ratios.get_dividend_payout_ratio()
Which returns:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| AAPL | 0.1528 | 0.1487 | 0.1549 | 0.1625 | 0.1377 |
| TSLA | 0 | 0 | 0 | 0 | 0 |
Parameters
get_dividend_payout_ratio accepts the following parameters:
- rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
- growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
- lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
- standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
- trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.