Question

Assume you own shares in Honeywell Inc. and that the company currently earns $4.40 per share and pays annual dividend payments that total $2.40 a share each year. Calculate the dividend payout for Honeywell. (Enter your answer as a percent rounded to 2 decimal places.)

Answer 1

Answer:

$54.54%

Explanation:

Data provided as per the question below:-

Dividend payments = $2.40

Earnings = $4.40

The computation of dividend payout is shown below:-

Dividend payout ratio = Dividend payments ÷ Earnings × 100

= $2.40 ÷ $4.40 × 100

= $54.54%

Therefore for computing the dividend payout ratio we simply divide earnings by dividends payments and convert into percentage.