Source: https://mochatrade.com/learn/glossary/payout-ratio

# Payout ratio
URL: https://mochatrade.com/learn/glossary/payout-ratio
Last modified: 2026-10-17

Payout ratio is the share of earnings paid out as dividends; $1 paid on $4 earned is 25%. Above 100% the dividend comes from savings or debt. Check it against [the cash flow statement on EDGAR](https://mochatrade.com/learn/start-here/how-to-read-us-market-news), since dividends are paid in cash, and against [what the guide says about next year](https://mochatrade.com/learn/us-market-structure/us-earnings-explained).

## Related terms

- 10-K and 10-Q: https://mochatrade.com/learn/glossary/10-k-and-10-q
- EPS: https://mochatrade.com/learn/glossary/eps
- Form 4: https://mochatrade.com/learn/glossary/form-4
- SEC filings: https://mochatrade.com/learn/glossary/sec-filings
- Implied volatility: https://mochatrade.com/learn/glossary/implied-volatility
- Market correction: https://mochatrade.com/learn/glossary/market-correction