Dados B3 › Glossary

Glossary

Payout ratio

What share of the year's profit the company paid out to shareholders.

What it is

What share of the year's profit the company paid out to shareholders. Shown on the stocks pages.

How Dados B3 calculates it

the year's distributions per share ÷ the year's earnings per share.

Example

Illustrative example, with made-up numbers to keep the arithmetic easy: Earnings per share of R$ 2.00 and distributions of R$ 1.00 per share: payout = 50%.

What to watch for when reading it

• A payout above 100% means it paid more than it earned, which cannot last for long.
• A year's distributions may relate to another year's profit.

See also

• Dividend yield (DY)
• EPS (earnings per share)

Methodology · All indicators

Educational content to understand what each number means. It is not a recommendation to buy or sell.