The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. RingCentral's Dividend Payout Ratio for the
months ended in Mar. 2026 was 0.06.
The historical rank and industry rank for RingCentral's Dividend Payout Ratio or its related term are showing as below:
LTS:0V50'
s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0.02
Current: 0.02
During the past 13 years, the highest Dividend Payout Ratio of RingCentral was 0.02. The lowest was 0.00. And the median was 0.00.
LTS:0V50's Dividend Payout Ratio is ranked better than 99.31% of 870
companies
in the Software industry
Industry Median: 0.405
vs LTS:0V50: 0.02
The growth rate is calculated with least square regression.
For more information regarding to dividend, please check our Dividend Page.
* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.
RingCentral (LTS:0V50) Dividend Payout Ratio Explanation
In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.
RingCentral Dividend Payout Ratio Related Terms
RingCentral Dividend Payout Ratio Historical Data
* Premium members only.
The historical data trend for RingCentral's Dividend Payout Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LTS:0V50 vs NATL, QTWO, DBD: Dividend Payout Ratio Comparison
For the Software - Application subindustry, RingCentral's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
RingCentral Dividend Payout Ratio vs Software Industry
For the Software industry and Technology sector, RingCentral's Dividend Payout Ratio distribution charts can be found below:
* The bar in red indicates where RingCentral's Dividend Payout Ratio falls into.
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.
RingCentral's Dividend Payout Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
RingCentral (LTS:0V50) has a Dividend Payout Ratio of 0.06 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on RingCentral and its competitors. According to the industry distribution chart, RingCentral ranks #6 out of 870 companies in the Software industry, placing it in the top 0.7%.
Is RingCentral's Dividend Payout Ratio too high?
RingCentral's current Dividend Payout Ratio is 0.06. The Software industry median Dividend Payout Ratio is 0.41. RingCentral's value of 0.06 is 85.2% below this industry median. Based on the distribution chart, RingCentral ranks #6 out of 870 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, RingCentral has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does RingCentral's Dividend Payout Ratio compare to NATL and QTWO?
According to the Software industry distribution chart, RingCentral ranks #6 out of 870 companies for Dividend Payout Ratio. This places RingCentral in the top 1% of its industry — outperforming the majority of peers. The industry median Dividend Payout Ratio is 0.41. RingCentral's value of 0.06 is 85.2% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Dividend Payout Ratio for a Software company?
The median Dividend Payout Ratio among Software companies is 0.41, based on 870 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. RingCentral's current Dividend Payout Ratio of 0.06 is 85.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on RingCentral and its competitors. For the Software industry, the median Dividend Payout Ratio is 0.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RingCentral's current Dividend Payout Ratio is 0.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RingCentral stock overvalued right now?
Based on GuruFocus' analysis, RingCentral (LTS:0V50) is currently considered Fairly Valued. The stock's GF Value™ is $37.76, compared to a current price of $41.23 — trading 9.2% above its estimated fair value. The current Dividend Payout Ratio is 0.06 and 85.2% below the Software industry median of 0.41. RingCentral's overall GF Score™ is 71/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For RingCentral (LTS:0V50), the current Dividend Payout Ratio is 0.06 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is RingCentral (LTS:0V50) Overvalued in 2026?
Based on GuruFocus' analysis, RingCentral stock appears to be overvalued.
The current stock price of $41.23 is trading 9.2% above its estimated GF Value™ of $37.76.
GuruFocus considers RingCentral to be Fairly Valued.
Key valuation signals for LTS:0V50:
Dividend Payout Ratio: 0.06
GF Value™: $37.76 vs. price of $41.23 (9.2% above fair value)
Industry Position: 85.2% below the Software median (#6 of 870)
No single metric tells the full story. See the LTS:0V50 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RingCentral is a unified communications as a service, or UCaaS, provider. Its software helps users communicate and collaborate via voice, video, and messaging across all device types and all from one platform. RingCentral helps customers modernize and move from legacy on-premises systems to modern, cloud-based systems. Beyond its core RingCentral MVP solution, RingCentral also offers a cloud-based contact center solution, a stand-alone video meetings solution, and webinars.
71GF Score
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