Dividend Payout Ratio Calculator: Earnings and Free Cash Flow Coverage
Payout Ratio & Dividend Safety
Enter per-share numbers from a company's latest annual report to see how much of its profit and cash goes to the dividend.
Warning signs before many dividend cuts
- Payout ratio above 100% for more than a year
- Free cash flow falling while the dividend rises
- Debt rising to fund the dividend
- Yield far above peers after a big price drop
- Management language shifting to "reviewing capital allocation"
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