Name: Dividend Payout Ratio

Definition: The dividend payout ratio shows what portion of the company’s profits are paid out to shareholders as dividends. If it’s 60%, that means 60% goes to shareholders, while 40% is kept inside the business for future growth. High payout ratios reward shareholders today. Lower payout ratios suggest the company believes it can earn even more by reinvesting in itself.

Interpretation:
• In '2021', OTIS's dividend payout ratio was 0.32, demonstrating the portion of earnings distributed as dividends. Industry average for Consumer Electronics/Appliances in '2021' stood at 0.15.
• In '2022', OTIS's dividend payout ratio was 0.34, demonstrating the portion of earnings distributed as dividends. Industry average for Consumer Electronics/Appliances in '2022' stood at 0.46. Industry average increased by 0.30 compared to previous year.
• In '2023', OTIS's dividend payout ratio was 0.38, demonstrating the portion of earnings distributed as dividends. Industry average for Consumer Electronics/Appliances in '2023' stood at 0.45. Industry average declined by 0.00 from previous year.
• In '2024', OTIS's dividend payout ratio was 0.38, demonstrating the portion of earnings distributed as dividends. Industry average for Consumer Electronics/Appliances in '2024' stood at 0.86. Industry average increased by 0.41 compared to previous year.
Overall, OTIS's dividend payout ratio has steadily improved over the past 4 years.

Formula: Dividend Payout Ratio = Dividends / Net Income

Good Range: Ranges widely; 30%-60% common for mature firms.