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Dividend payout ratio
Dividends paid as a share of net income, why the ratio can exceed 100%, and the figure for each company that paid a dividend.
The short answer
The dividend payout ratio is dividends paid divided by net income: the share of a year's profit that was paid out in cash to shareholders. Across the 85 companies here that both earned a profit and paid a dividend, the median is 39.6%. 8 of them paid out more than that year's net income.
The formula
Dividend payout ratio = dividends paid ÷ net income
Dividends paid is a line on the cash flow statement, in the financing section. Net income is the bottom line of the income statement. Some people instead divide dividends per share by earnings per share, which is usually close but can differ when the share count changes during the year. This table uses the cash and net-income totals so every company is on the same basis. It is not the same as dividend yield, which compares the dividend with the share price.
When the ratio is over 100%
8 companies in the table paid out more than their net income, among them AbbVie, CVS Health, Starbucks, American Tower. That can happen when a one-time charge reduces profit for a single year while the company keeps the cash dividend where it was, or when it draws on cash or borrowing to fund the dividend. It can also happen when net income is small relative to a long-standing payout.
AbbVie's 2025 10-K reports acquired in-process research and development and milestone expense of $5,016 million for the year, a charge that reduces net income but is separate from the ordinary dividend. A large item like that can push the payout ratio well above 100% for that year without a matching change in the dividend itself.
How to read it
- A stable payout below 100% means the dividend was covered by that year's profit, with some earnings kept in the business or used for buybacks and debt reduction.
- The ratio says nothing by itself about whether the dividend will be raised, cut or held. That depends on cash flow, the balance sheet and the board's policy, which the 10-K and the dividend announcement describe.
- 0 covered companies reported no cash dividend in their latest year. A zero payout is a policy choice, not a missing figure.
Johnson & Johnson paid $12.4B of dividends against net income of $26.8B, a payout of 46.2%.
Source: Johnson & Johnson 10-K for fiscal 2025, filed Feb 11, 2026
Every company that paid a dividend
Cash dividends paid and net income for the latest fiscal year, from each 10-K, sorted by payout ratio. Companies with no dividend payment, or with zero or negative net income, are left out of the table. Dividends paid is the cash-flow figure, which can differ slightly from dividends declared.
Common questions
What is the dividend payout ratio?
Dividends paid divided by net income, usually shown as a percentage. It is the share of a year's profit that was paid out in cash to shareholders.
Can the payout ratio be more than 100%?
Yes. 8 companies in the table paid out more than that year's net income, often because a one-time charge reduced profit or because the dividend was funded from cash on hand.
Is payout the same as dividend yield?
No. Payout compares the dividend with net income. Yield compares it with the share price.
Should I use dividends paid or dividends declared?
They are usually close. Dividends paid is the cash that actually left the company during the year; dividends declared is what the board approved, some of which may be paid in the next year.
What does a payout of zero mean?
That the company paid no cash dividend that year. Many growing companies pay none and reinvest the cash, or return cash only through buybacks.
Disclosures
- Editor holdings
- The editor holds no position in any company named on this page. As of Nov 11, 2026.
- Compensation
- Nobody paid for this page. No affiliate links on this page.
- Sources
- Each company's own SEC filings, linked next to each number.
- Last updated
- Nov 10, 2026
General education, the same for every reader. Not a recommendation to buy, sell or hold any security, and it doesn't consider your situation.
More in Learn and Tools · Methodology & Disclosures explains where every number comes from.