SOUTHERN CO (SO) — payout ratio, three ways
Fiscal year ending 2025-12-31 · sector Utilities · payout ratios computed from SEC filings, not taken from a data vendor.
| Basis | Payout | Why it differs |
|---|---|---|
| GAAP earnings | 75.0% | The basis that applies. A regulated utility earns an allowed return on its rate base, and the dividend is set against that. |
| Operating cash flow | 30.8% | Closer to meaningful than free cash flow, but still before the capital programme the regulator expects the company to run. |
| Free cash flow | negative | Operating cash flow was $2,935m short of capital spending, so no ratio exists. Normal for a regulated utility funding its rate base. |
Spread between highest and lowest: 44 percentage points. Same filings, different denominators.
Coverage rating 51 / 100 — Tight. ? Peer standing 10/50Direction 25/30Stability 15/20
GAAP earnings payout, last 6 years
| Fiscal year | Payout |
|---|---|
| 2025-12-31 | 75.0% |
| 2024-12-31 | 71.7% |
| 2023-12-31 | 76.8% |
| 2022-12-31 | 82.8% |
| 2021-12-31 | 117.0% |
| 2020-12-31 | 86.7% |
Among the 57 utilities companies here, only 21% pay out a larger share on this basis — this is at the demanding end.
The arithmetic
- GAAP earnings — dividends declared per share $2.94 ÷ diluted EPS $3.92
- Operating cash flow — dividends paid $3,015.0m ÷ operating cash flow $9,802.0m
- Free cash flow — dividends paid $3,015.0m ÷ (operating cash flow $9,802.0m − capex $12,737.0m)
Where the figures came from
- 10-K filed 2026-02-19 · accession
0000092122-26-000006
Every one is public at sec.gov and free to check. That is the point — you should not have to take my word for any of it.
Computed by an open pipeline reading SEC XBRL directly. If any number here looks wrong to you, tell me — that is more useful to me than agreement.