How this calculator works
Measure common dividends as a share of positive earnings available to common shareholders. You can use company totals, consistent per-share figures or an average diluted share count. The ratio can exceed 100% if distributions exceed current earnings. Do not mix common dividends with income before preferred dividends.
Formula
Payout = common dividends / common earnings = dividends per share / EPS, when both use the same share basis. Diluted EPS = common earnings / weighted average diluted shares.
Worked example
$300,000 dividends on $1,000,000 common earnings is a 30% payout. Dividends per share of $1.50 and EPS of $3 give 50%.
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Frequently asked questions
Why does payout exceed 100%?
The company distributed more than its current-period earnings. Cash reserves, borrowing or asset sales may fund the difference.
Should I use declared or paid dividends?
Use a consistent period and disclose whether your numerator is declared or paid. Timing differences can affect comparisons.
Can I use this during a loss?
This tool requires positive earnings because payout percentages are not useful in the usual sense when earnings are zero or negative.