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.

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Calculate the Dividend Payout Ratio in Python

The Dividend Payout Ratio is available in 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.
Market Capitalization Enterprise Value EV to Sales Ratio EV to EBITDA Ratio EV to Operating Cashflow Ratio Earnings Yield Reinvestment Rate Tangible Asset Value Net Current Asset Value EV to EBIT EV to Free Cash Flow Ratio Buyback Yield

The Ratios module page introduces the module, and the sidebar lists all of its functions.

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