Dividends per Share The following financial data is from HiT

Dividends per Share The following financial data is from Hi-Tech Instruments\' financial statements (thousands of dollars, except earnings per share.) 2016 Sales revenue Cost of goods sold Net income Dividends Earnings per share $210,000 125,000 8,500 2,800 425

Solution

Dividend per share = Total dividend/Average no of share outstanding

= 2800/2000

Dividend per share = 1.40 per share

Dividend payout ratio = Total dividend*100/Total income

= 2800*100/8500

Dividend payout ratio = 32.9%