Dividend Per Share
Dividend per share (DPS) measures the dividend amount distributed per share, calculated as DPS = Total Dividend Amount / Number of Shares Outstanding. Alternatively, it can be derived as DPS = Earnings Per Share × Dividend Payout Ratio, linking it to a company’s earnings and payout policy. This metric reveals how much dividend income an investor can expect for each share held. By assessing DPS, investors gauge the per-share profit returned to them, aiding in evaluating a stock’s income potential and the company’s approach to distributing profits versus retaining earnings.
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