Calculate the percentage of earnings paid to shareholders.
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Dividend Payout Ratio (DPR)0%
Retention Ratio0%
Payout Sustainability
What is the Dividend Payout Ratio (DPR)?
The Dividend Payout Ratio (DPR) is a key financial metric used by investors to evaluate the sustainability of a company's dividend payment program. It measures the proportion of net income that is distributed to shareholders in the form of dividends, expressed as a percentage.
Unlike yield, which relates dividends to stock price, the DPR relates dividends directly to the company's earnings. This calculator helps you determine how much of the company's profit is being returned to you versus how much is being reinvested into the company for future growth (Retained Earnings).
The DPR Formula
The logic used in this calculator is based on the standard accounting formula:
DPR = (Total Dividends Paid / Net Income) × 100
Alternatively, you can use per-share metrics:
DPR = (Dividends Per Share / Earnings Per Share) × 100
Interpreting Your DPR Result
Understanding the output is crucial for making investment decisions:
0% – 35%: Considered a low payout ratio. The company is retaining most of its earnings for expansion, R&D, or debt reduction. Common in growth stocks.
35% – 55%: Often considered a "healthy" balance. The company pays a decent dividend while retaining roughly half of earnings for stability and moderate growth.
55% – 75%: High payout ratio. Common in mature industries like utilities or telecommunications (often called "Blue Chip" stocks).
Above 100%: Warning sign. The company is paying out more in dividends than it earns in profit, often funding payments through debt or existing cash reserves. This is usually unsustainable.
Why is DPR Important?
Investors use the Dividend Payout Ratio to assess risk. A consistently rising DPR might indicate that earnings are slowing down, while dividends remain flat. Conversely, a sudden drop in DPR might signal that the company is hoarding cash for a major acquisition. By using this calculator, you can quickly assess whether a stock's dividend yield is supported by actual profits.
function calculateDPR() {
// 1. Get Input Values
var dividendsInput = document.getElementById("totalDividends");
var incomeInput = document.getElementById("netIncome");
var dividends = parseFloat(dividendsInput.value);
var income = parseFloat(incomeInput.value);
// 2. Validation
if (isNaN(dividends) || isNaN(income)) {
alert("Please enter valid numbers for both Dividends and Net Income.");
return;
}
if (income === 0) {
alert("Net Income cannot be zero.");
return;
}
// 3. Logic: Calculate DPR
var dpr = (dividends / income) * 100;
var retention = 100 – dpr;
// 4. Logic: Determine Sustainability Status
var badgeText = "";
var badgeColor = "";
var badgeBg = "";
if (dpr 100) {
badgeText = "Unsustainable (>100%)";
badgeBg = "#dc3545"; // Red
} else if (dpr >= 75) {
badgeText = "High / Aggressive";
badgeBg = "#ffc107"; // Yellow/Orange
badgeColor = "#000";
} else if (dpr >= 35) {
badgeText = "Healthy / Balanced";
badgeBg = "#28a745"; // Green
} else {
badgeText = "Low / High Retention";
badgeBg = "#17a2b8"; // Blue
}
// 5. Update UI
document.getElementById("dprResult").innerHTML = dpr.toFixed(2) + "%";
document.getElementById("retentionResult").innerHTML = retention.toFixed(2) + "%";
var badgeEl = document.getElementById("sustainabilityBadge");
badgeEl.innerHTML = badgeText;
badgeEl.className = "status-badge";
badgeEl.style.backgroundColor = badgeBg;
if(badgeColor) {
badgeEl.style.color = badgeColor;
} else {
badgeEl.style.color = "white";
}
// Show result box
document.getElementById("result").style.display = "block";
}