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## How do you calculate dividend payout?

Find the **dividends per common share on the income statement** and determine the earnings per share. Divide the dividends per common share by the earnings per share to get the dividend payout.

## What is the formula for dividend cover?

The dividend coverage ratio is calculated by **dividing a company’s annual EPS by its annual DPS or dividing its net income less required dividend payments to preferred shareholders** by its dividends applicable to common stockholders.

Dividend per share (DPS) is the sum of declared dividends issued by a company for every ordinary share outstanding. The figure is calculated by **dividing the total dividends paid out by a business, including interim dividends**, over a period of time, usually a year, by the number of outstanding ordinary shares issued.

## How is monthly dividend payout calculated?

**Divide the quarterly dividend by 3**. For example, if the the company pays a quarterly dividend of $. 30 per share, then the monthly dividend equals $. 10 per share.

## What does a dividend cover of less than 1 mean?

A dividend cover of less than 1 suggests that **the company is taking from last year’s profits to pay this year’s dividend**. Any result of less than 1.5 could indicate trouble.

## How is payout value calculated?

The general formula for payout ratio is quite simple. **Take the company’s dividends per share, divide them by earnings per share, and multiply the result by 100 to convert it to a percentage**. You can use any time period to calculate a payout ratio.

## How do you calculate stock payout?

Dividend Yield Formula

Dividend **yield equals the annual dividend per share divided by the stock’s price per share**. For example, if a company’s annual dividend is $1.50 and the stock trades at $25, the dividend yield is 6% ($1.50 ÷ $25).