Seeking Alpha

richardgere12's  Instablog

richardgere12
Send Message
DividendInvestor.com provides our members with the essential proprietary dividend stock mining tools to screen High dividend yield stocks, monthly dividend stocks, ex dividend date, dividend history and many more stock dividend screening criteria. Join now so you can start to identify your own... More
My company:
Dividend investor
My blog:
DividendInvestor
  • It's A Right Time Now – To Calculate Dividend Per Share 0 comments
    Mar 19, 2013 2:58 AM

    Dividend per share (DPS) is the total dividend pay over a year divided by the number of ordinary shares issued.

    DPS calculated by the following formula:

    DPS is gradually found on the quote pages as the dividend paid in the recent quarter which is used to calculate the dividend yield.

    For example: XYZ company paid a total of $237,000 in dividends over the last year and there one time dividend totaling is $59,250. XYZ has 2 million shares outstanding therefore its DPS is ($237,000-$59,250) /2,000,000 = $0.0889 per share.

    Growing dividend per share is a sign of the company's management who knows the growth is sustainable. DPS is calculated separately for each class of share like ordinary shares, preference share, dividend yield, dividend cover and payout ratio.

    DPS does not need to calculation generally it is disclosed. This only for readers who may confuse that what is final dividend with the total paid in the year? On the record date dividends are paid to shareholders. Investors should keep eye on the ex dividend date so you get the dividend under terms and conditions. Company pays interim dividend during the year. These add into total amount so that calculate DPS, dividend yield, payout ratio and others.

    Use of dividend per share formula

    Dividends are a sign of investors. If DPS is drop down than investors predict that company is not in good condition. On the other hand if a dividend per share is going up then investors feel that it performs well. DPS formula is used by individuals who are evaluating different stocks to invest in and find companies who pay dividends. This formula does not give an overall outlook of the company but helpful to evaluate payout ratios, dividend yield etc.

    Steps to calculate dividend per share

    When investors get a dividend in our account then they curios to know how much dividend they get on per share. Therefore I am sharing some steps which are telling you about how to calculate dividend per share, what's the dividend yield and dividend payout ratios. These calculations help you to identify your investment performance.

    First step

    Take a view of investment records to identify the number of shares of the stocks you have. The company only pays those dividends which are based on owned number of shares as of an announced record date.

    Second step

    Divide the amount of dividend payments by the number of shares. Don't include any sold shares before the ex dividend date or purchased afterward. For example, if you receive a dividend payment of $250 and held 500 shares as of the ex dividend date, your dividend per share is $0.50.

    Third step

    Then calculate the annual dividend per share. Generally, all the companies pay dividends quarterly. Sometimes they pay a special dividend in addition. Annual dividend per share is equal to the regular quarterly dividend multiplied by four plus the amount per share of any special dividend payments. If you receive a regular dividend of $0.50 per quarter plus a special dividend of $0.25 per share your annual dividend per share is ($0.50 * 4) + $0.25, which works out to $2.25 per share.

    Fourth step

    You can use dividend per share calculator

    By the use of this calculator you can easily calculate DPS.

    Fifth step

    There are several websites which are announced daily news and updates of stocks and their dividend per share.

    For example:-

    DividendInvestor is a site which provides daily news and updates of stocks and dividend per shares.

    · Mar 11, 2013: - Artis Real Estate Investment T (NASDAQ: ARESF) declared a dividend of $0.0900 per share.

    · Mar 11, 2013: - American Vanguard Corp. (NYSE: AVD) declared a dividend of $0.0700 per share.

    Dividend Investor provides additional dividend stocks data, information or screening tools, we encourage you to visit the website. http://www.dividendinvestor.com/

    A leading source for in-depth research & analysis on dividend paying stocks.

Back To richardgere12's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.