Dividend per share (NYSE: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.
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.
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.
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.
You can use dividend per share calculator
By the use of this calculator you can easily calculate DPS.
There are several websites which are announced daily news and updates of stocks and their dividend per share.
· 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.
A leading source for in-depth research & analysis on dividend paying stocks.