Payout Ratio (Historical)
Returns the historical dividend payout ratio for a company. This shows what percentage of earnings is paid out as dividends.
Formula
Payout Ratio = Dividends Per Share / Earnings Per Share
Parameters
| Parameter | Required | Description |
|---|---|---|
| Symbol | Yes | Stock ticker symbol |
| Year | Yes | Fiscal year or period code |
| Quarter | No | Quarter 1-4 |
| TTM | No | "TTM" for trailing twelve months |
Interpretation
- Low ratio: Company retains more earnings for growth
- High ratio: Company distributes more to shareholders
-
100%: Company paying more than it earns (unsustainable)
Syntax
=hf_Payout_Ratio(Symbol, Year, [Quarter], [TTM])Examples
=hf_Payout_Ratio("AAPL", 2023, 4)=hf_Payout_Ratio("KO", "ly")=hf_Payout_Ratio("JNJ", 2023, , "TTM")=hf_Payout_Ratio("MSFT", 2023)*100When to Use
- Dividend sustainability analysis
- Income investing research
- Comparing dividend policies
- Earnings retention analysis
When NOT to Use
| Scenario | Use Instead |
|---|---|
| Dividend yield | DividendYield() |
| Dividend per share | DividendPerShare() |
| Current payout ratio | DividendPayoutRatio() |
Common Issues & FAQ
Why is payout ratio over 100%?
Company is paying more dividends than earnings, which is unsustainable long-term.
What's a good payout ratio?
Varies by industry. REITs are high (90%+), growth stocks are low (<30%).
Related Formulas
More MarketXLS Historical Fundamentals formulas you can use in the same worksheet:
- Post Tax Profit Indicator (Historical)
- Post-Tax Profit Margin (Historical)
- Pre Tax Profit Indicator (Historical)
- Pre-Tax Income EBT (Historical)
- Pre-Tax Profit Margin (Historical)
- Preferred Dividends Income Statement Impact (Historical)
- Preferred Equity Outside Stock Equity (Historical)
- Preferred Securities Of Subsidiary Trust (Historical)
Get Access to 1 Billion Usable Market data points IN YOUR EXCEL SHEETS WITH EASY TO USE EXCEL FUNCTIONS
Get started today
▶
How does MarketXLS work?