Dividends Per Share

Dividends Per Share (DPS) refers to the total amount of dividends declared by a company for each outstanding Share of its Stock. It is an important financial metric used by investors to assess the income generated from owning Shares of a company.

DPS is calculated by dividing the total dividends paid by the number of Shares/">Outstanding Shares:

DPS = Total Dividends Paid / Number of Shares/">Outstanding Shares

For example, if a company declares a total dividend of $1,000,000 and has 1,000,000 Shares outstanding, the DPS would be:

DPS = $1,000,000 / 1,000,000 = $1.00

In a case where a company increases its dividend from $0.50 to $0.75 per Share, the DPS reflects this increase, providing Shareholder/">Shareholders with more income and signaling the company’s financial health.