The Dividend Payout Ratio is a financial metric that shows the proportion of a company’s earnings paid out as dividends to shareholders. It helps assess how much of a company’s profit is being returned to investors versus retained for growth. A high payout ratio might indicate that a company prioritizes dividends over reinvestment, while a low ratio could suggest potential for future growth or a conservative dividend policy. The ratio can also give insights into a company’s financial health and ability to sustain future dividend payments.