Dividend Payout Ratio & Retention Rate

The dividend payout ratio refers to the portion of the annual net profit that is distributed to the company’s owners in the form of dividends. The retention rate (or plowback ratio) describes the share of profits that is retained within the company and used for debt repayments, the financing of investments, or the strengthening of equity.

The data (i.e., dividends per share, earnings per share) used for the dividend payout ratios and retention rates is based on the most recent financial information published by the respective companies (in annual or semi-annual reports).

We calculated the dividend payout ratios and retention rates based on the median of the companies within the respective sectors. In total, the dividend payout ratios and the retention rates add up to 100%.

The financial services sector (including banks, insurance companies, etc.) was excluded.