Dividends per Share (DPS)
Dividends per Share (DPS)
Total dividends declared for the period divided by shares outstanding: the cash each share received.
When to use: Use to compute dividend yield (DPS over price), payout ratio (DPS over EPS), and to track dividend growth over time on a per-share basis that is unaffected by share issuance or buybacks.
Formula
Variables
| Symbol | Name | Description | Unit |
|---|---|---|---|
| DPS | Dividends per Share | Dividend paid per share | $ |
| TotalDividends | Total Dividends | Dividends declared for the period, in total | $ |
| Shares | Shares Outstanding | Weighted average shares outstanding | integer |
Real-Life Examples
Example 1: Large Dividend Payer
$450M of dividends declared; 300M shares outstanding.
Given
Step-by-Step
Each share received $1.50 for the year. At a $50 share price that is a 3% dividend yield.
Example 2: Small Payer
$12M of dividends; 40M shares.
Given
Step-by-Step
Thirty cents a share. Whether that is generous depends on earnings per share: at $3.00 EPS it is a 10% payout ratio.
Frequently Asked Questions
Declared for the period is the usual basis for DPS, since payment dates can straddle fiscal years. Use one convention consistently.
Report them separately. A one-off special dividend inflates DPS for one period and distorts growth and yield comparisons if mixed in with the regular dividend.