1. What Is Dividend Per Share?

Dividend Per Share (DPS) is a financial metric that shows the amount of dividend income distributed to shareholders for each share they own. It's calculated by dividing total dividends paid by the number of outstanding shares.

2. How Does The Calculator Work?

The calculator uses the DPS formula:

Where:

• \( DPS \) — Dividend Per Share ($)
• \( TD \) — Total Dividends ($)
• \( S \) — Number of Shares

Explanation: This simple division calculates how much dividend income each individual share receives from the company's total dividend distribution.

3. Importance Of DPS Calculation

Details: DPS is a key indicator of a company's profitability and shareholder value. It helps investors assess dividend yield, compare companies, and make informed investment decisions based on income generation.

4. Using The Calculator

Tips: Enter total dividends in dollars and the number of shares. Both values must be positive numbers (dividends ≥ 0, shares > 0).

5. Frequently Asked Questions (FAQ)

Q1: What is a good DPS value?
A: A "good" DPS depends on the industry and company. Generally, consistent or growing DPS over time indicates financial health and shareholder-friendly policies.

Q2: How often is DPS calculated?
A: DPS is typically calculated for each dividend payment period (quarterly, semi-annually, or annually) and reported in financial statements.

Q3: Does DPS include special dividends?
A: Yes, total dividends include both regular and special one-time dividend payments made during the period.

Q4: How does DPS relate to dividend yield?
A: Dividend yield is calculated as DPS divided by the current stock price, expressed as a percentage. It shows the return on investment from dividends alone.

Q5: Can DPS be higher than earnings per share?
A: Yes, but this is generally unsustainable long-term as companies typically pay out only a portion of their earnings as dividends.