Dividend Payout Ratio: Free Checker for Any US Stock

The short answer

The payout ratio shows how much of its profit a company hands to shareholders as dividends.

A payout ratio of 40% means that for every $1 of profit, 40 cents goes out as dividends. The other 60 cents stays in the business.

A lower ratio leaves more room. If profits dip, the company can keep paying. A ratio above 100% means it pays out more than it earns, which can't last unless profits grow back. REITs are the big exception, explained below.

What the checker does

Type a ticker or a company name. You see:

• The payout on profit, with a plain label: low, comfortable, high, very high, or more than it earns.
• The payout on cash. The share of its free cash flow that goes to dividends. Cash is harder to dress up than profit, so it's a useful second check.
• The industry's middle value, to see if it pays out more or less than its peers.
• How long it has paid, over the last 5 years.

There's also a small calculator at the bottom. Type the dividend per share and the earnings per share and get the ratio.

It covers about 4,700 US-listed companies. It's free, and you don't need an account.

How it works

Payout ratio = dividends ÷ profit

We use the dividends the company paid and its net income, its profit after all costs and taxes. Both come from its filings with the SEC, the US regulator for stocks. We read them every night.

Payout on cash = dividends ÷ free cash flow

Free cash flow is the cash left after the company pays to run the business and invest in it. Dividends are paid in cash, so this shows if the cash really covers them.

When profit includes a big one-off gain, like selling a factory, we don't work out the ratio. The one-off would make the dividend look safer than it is. And when the dividend figure we find doesn't look right next to the share price, we leave it out rather than guess.

What is a good payout ratio?

For most companies, under 60% is comfortable. Under 30% leaves lots of room to raise the dividend. From 60% to 80% is high, and above 80% is very high: a bad year could force a cut.

What's normal depends on the industry. Here is the middle payout among dividend payers that made a profit, from our October 2026 data:

Industry	Middle payout on profit
Industrials	28%
Health care	28%
Energy	28%
Financial services	28%
Technology	29%
Retail & consumer	31%
Materials	35%
Media & telecom	41%
Utilities	56%
Everyday goods	67%
Real estate (REITs)	130%

Steady businesses, like utilities and food and drink makers, pay out more. Their profits don't swing much, so they need less cash held back for bad years.

Real examples

From each company's latest numbers in October 2026:

• Apple (AAPL): 12%. A small dividend next to its profit. Apple returns far more cash through share buybacks.
• AT&T (T): 37% of profit and 45% of free cash flow.
• Johnson & Johnson (JNJ): 59% of profit and 56% of cash. Comfortable.
• Coca-Cola (KO): 61% of profit and of cash. High-ish, but normal for everyday goods.
• Verizon (VZ): 71% of profit, but only 53% of free cash flow.
• Altria (MO): 87% of profit and 76% of cash. Very high.
• Realty Income (O): 230% of profit. Normal for a REIT, as the next section explains.

Why REITs pay out more than they earn

A REIT, or real estate investment trust, owns property like shops, flats or warehouses. To keep their special tax status, REITs must pay out at least 90% of their taxable income as dividends.

Their profit is also cut by depreciation: an accounting cost for buildings wearing out. But many buildings keep their value or rise. So a REIT's profit understates the cash it brings in.

That's why REITs often pay out more than 100% of their profit. They usually report funds from operations, or FFO, which adds depreciation back. It's a better guide for them.

What the payout ratio can't tell you

• The future. It looks at the past year. A company with falling profits can see its ratio jump.
• Buybacks. Many companies return cash by buying back shares. The payout ratio only counts dividends.
• Debt. A company can borrow to keep paying. Check its debt with the debt to equity checker.
• Special dividends. A one-off payment can push the ratio up for a year.

This page is for learning. It isn't advice about what to buy or sell.

Questions

What is a good dividend payout ratio? Under 60% is comfortable for most companies, and under 30% leaves lots of room. Compare with the industry: utilities and food companies normally pay out more, and REITs follow different rules.

How do you calculate the payout ratio? Divide the yearly dividend per share by the earnings per share. A company paying $2 a share in dividends and earning $4 a share has a payout ratio of 50%.

What does a payout ratio over 100% mean? The company paid out more in dividends than it earned. It's using savings, borrowing or cash flow to pay. That can't last forever unless profits rise, though it's normal for REITs.

Is a low payout ratio bad? Not usually. It means the company keeps most of its profit to grow, pay down debt or buy back shares. It also leaves room to raise the dividend later.

Why use free cash flow as well as profit? Dividends are paid in cash. A company can show a profit while cash is tight, or the other way round. If both ratios look comfortable, the dividend is better covered.

What about companies that don't pay dividends? They have no payout ratio. Many use their profit to grow or to buy back shares instead.

Is it free? Yes. No account and no signup.

The next step

The payout ratio is one sign of a safe dividend. The free dividend calculator gives each stock a dividend safety score and checks for yield traps. Each company's page shows our verdict on whether it's a good business at a fair price.