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Dividend Payout Ratio Screener — Sustainable Dividend Stocks
Dividend payers ranked by payout ratio, from most conservative to most stretched. See at a glance which dividends are well covered by earnings — and which are consuming nearly everything the company makes.
How to Read Payout Ratio Data
The dividend payout ratio answers the most important question an income investor can ask: is this dividend safe? Take the dividend a company pays and divide it by the earnings it generates. A payout ratio of 40% means the company hands back 40 cents of every dollar it earns and keeps the rest. The lower the ratio, the more cushion the dividend has if profits fall — and the more room it has to grow.
This screener sorts stocks from the lowest payout ratio up, filtered to a 1%–80% band. The floor excludes money-losing companies where the ratio is meaningless; the ceiling excludes over-payers distributing nearly all — or more than all — of their earnings, a common precursor to a dividend cut. What remains is a list of dividend payers ranked by how much headroom they have.
Color coding reflects sustainability: green (≤30%) is conservative with ample room to grow, yellow (31–60%) is a healthy moderate range, and orange (61–80%) is elevated — still covered, but with less margin for error. Always read the payout ratio alongside the dividend yield: a high yield backed by a low payout ratio is durable, while a high yield stretched over a high payout ratio is fragile.
To calculate the payout ratio for a specific company, use our dividend payout ratio calculator.
Payout Ratio vs. Dividend Yield
Yield tells you what a stock pays; payout ratio tells you whether it can keep paying. A 6% yield looks attractive until you learn the payout ratio is 95% — meaning the company is distributing nearly every dollar it earns, with no buffer if earnings stumble. A 3% yield backed by a 35% payout ratio is often the better long-term holding: the dividend is safe, and there is ample room for it to grow. Reading the two metrics together is the core discipline of dividend investing.
When a High Payout Ratio Is Fine
A high payout ratio is not automatically a red flag. Utilities, REITs, and mature consumer-staples businesses generate stable, predictable cash flows and can safely sustain payout ratios of 70–80% or higher because their earnings rarely swing. The danger is a high payout ratio in a cyclical or capital-intensive business, where an earnings downturn can push the ratio above 100% and force a cut. This is why sector context matters: compare a stock's payout ratio to its industry peers, not to the broad market.
Frequently asked questions
What payout ratio is considered safe?
A payout ratio between 30% and 60% is generally considered safe for most companies — enough to reward shareholders while retaining capital for growth. Below 30% is conservative with strong room to grow the dividend. Above 80% is stretched and vulnerable to a cut if earnings decline, though stable sectors like utilities and REITs can safely run higher.
How does this screener get its data?
The screener pulls from our editorial coverage universe using Yahoo Finance. For each dividend-paying stock it fetches the payout ratio, dividend yield, market capitalization, and sector, then filters to payout ratios between 1% and 80% and sorts from most conservative. Data refreshes hourly.
Why are some stocks excluded from the screener?
Stocks are excluded if they pay no dividend, if the company is losing money (making the payout ratio meaningless), or if the payout ratio exceeds 80%. The 1%–80% band isolates dividend payers with a sustainable, well-covered payout — the companies most relevant to an income investor screening for safety.
Can a payout ratio be over 100%?
Yes, and it is a warning sign. A payout ratio above 100% means the company is paying out more in dividends than it earns, funding the shortfall from cash reserves, debt, or asset sales. This is unsustainable and often precedes a dividend cut. This screener filters these out by capping the band at 80%.
Should I only buy stocks with low payout ratios?
Not necessarily. A low payout ratio signals safety and growth potential, but the retained earnings need to be reinvested well. Pair a low payout ratio with a strong return on capital to confirm management is deploying retained cash productively. Some excellent income stocks in stable sectors run higher payout ratios and are perfectly safe.
How do I find the full analysis for a stock in the screener?
Click the ticker symbol to open the Basis Report stock intelligence page for that company. From there you can run a full DCF valuation, review dividend history and coverage, see earnings quality scores, and generate a complete research report.