The dividend per share calculator is a simple calculator that accurately and readily calculates the metric.
Dividend per share (DPS) is an absolute figure that presents how much dividend a company has decided to pay to the shareholder for each share they hold.
The formula for calculating the dividend per share is:
Dividend Per Share = Total Dividend / No. of Common Shares Outstanding
Dividend Per Share Calculator
How to Calculate using Calculator?
For using the calculator for calculating DPS, one has to find out the following figures.
- Total Dividend: It is the total dividend that the company has declared and decided to pay. This figure is available in the annual report of a company.
- No. of Outstanding Shares: This is the number of shares outstanding as on the date of DPS calculation.
This metric is a very important tool for various purposes. The metric is useful in comparing 2 firms in the same business. Past year trends of the DPS speak a lot about the dividend policy of the company. Apart from this, there are various important models that use the dividend per share for arriving at the valuation of a company.
