Which financial measure indicates how much of a company's income is returned to shareholders as dividends?

The Dividend Payout Ratio is crucial in assessing how much of a company's net income is distributed to shareholders in the form of dividends. This financial measure is calculated by dividing the total amount of dividends paid to shareholders by the company's net income. A high Dividend Payout Ratio may indicate that the company is prioritizing returning profits to shareholders rather than reinvesting into the business, while a low ratio could suggest more reinvestment for growth initiatives. This ratio is particularly important for investors looking for income through dividends, as it provides insight into how consistently a company rewards its shareholders.