Helping You Build Wealth With Honest Research
Since 1996. Read On...

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Revealed
India's Third Giant Leap

This Could be One of the Biggest Opportunities for Investors




Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.

AD

How to Calculate Dividend Per Share?

Dividend per share (DPS) is the total amount a company pays in the form of dividend for each ordinary share.

The amount is calculated by dividing a company's total dividend paid out, including interim dividend, during a set period of time, generally a year, by the number of shares outstanding.

Let’s try to put these words in a formula:

DPS=(D-Sd)/S

DPS - a sum of dividends over a period

Sd - any special dividend in the period

S - Total number of outstanding shares

Simply put, dividend per share is total dividend declared in a year divided by the total shares outstanding.

Dividends paid throughout the year, excluding special dividends, must be summed together to calculate DPS, including interim dividends.

Special dividends are payouts that are intended to be issued just once and are hence excluded.

Interim dividends are dividends given to shareholders that were declared and paid before a company's yearly earnings were calculated.

For example, assume ABC company paid a total of Rs 10 m in dividends over the last year, during which there was a special one-time dividend totaling Rs 4 m.

ABC has 2 million shares outstanding,

So its DPS is

(10,000,000 - 4,000,000)/2,000,000 = 3

Hence it has a dividend per share of Rs 3.

Dividend per share is an essential statistic for investors since the amount a company pays out in dividends immediately correlates to shareholder’s income. It is the simplest statistic an investor may use to compute their dividend payments over time from holding shares of a firm.

A constant rise in dividends over time might help reassure investors that the company's management feels the profit growth will be sustained.

Since you’re interested in dividends, here’s how you can spot a dividend paymaster.

Also check out some screens for dividends on Equitymaster's stock screener:


5 Dividend Growth Stocks That Can Provide a Lifetime of Passive Income

Nov 10, 2024

These 5 dividend growth stocks can help you achieve financial freedom and build lifetime wealth.

Top 5 Dividend Stocks to Watch Out For in 2025

Oct 18, 2024

With a new year just around the corner, check out these five high dividend-paying stocks known for their solid payouts.

These 4 Stocks Could Create Lasting Generational Wealth

Sep 7, 2024

Which are the top companies that could create generational wealth in India? Find out...

Top 5 Stocks to Watch Out for Upcoming Dividends in September 2024

Aug 16, 2024

Looking for cash in in these volatile times? These five companies are offering stable and hefty returns.

Top 5 Stocks to Watch Out for Upcoming Dividends in August 2024

Jul 16, 2024

Hefty dividend payments are around the corner. Watch out for these five stocks in August 2024.

Top 5 Stocks to Watch Out for Upcoming Dividends in July 2024

Jun 18, 2024

Looking for high dividend-paying stocks? Here are five stocks paying big dividends in July 2024.

Top Stocks that Raised Their Dividend Guidance for FY25

Jun 4, 2024

A few standout companies are already making promising moves by increasing their dividend guidance for 2025.

5 Stocks Paying More Than 1,000% Dividends in June 2024

May 22, 2024

On the hunt for high dividend stocks? Don't miss these five in June 2024.

5 High Dividend Stocks Up More Than 80% in 2024

May 12, 2024

Dividend stocks are making sense now. Here are 5 which have also performed well on the bourses in 2024 so far.

Why REC Share Price is Rising

May 2, 2024

The Navratna company has not added any new NPA in the last eight quarters, and it's aiming to be NPA free by the end of FY25.

5 Stocks Paying More Than 600% Dividend in November 2024

Oct 29, 2024

On the hunt for dividend stocks? Don't miss these five in November 2024.

Top 10 Dividend Stocks to Watch Out for in 2025

Oct 5, 2024

Your dividend stocks watchlist for 2025.

Can Investors Expect a 10,000% Dividend from Vedanta?

Sep 4, 2024

Taking the example of Vedanta, we look at how a portfolio of regular dividend payers can give you income that flows in regularly, without you lifting a finger.

5 Penny Stocks to Watch Out for Upcoming Dividends in August 2024

Aug 5, 2024

While penny stocks may seem risky, there are some companies which maintain their dividend payout ratios and have strong financials to back them.

Lithium Upside for Best Dividend Stock?

Jun 19, 2024

One of the best dividend stocks in the country could benefit from the lithium gold mine.

How to Build the Ultimate Dividend Portfolio

Jun 14, 2024

How do you go about building a great dividend portfolio? Read on...

Why Cochin Shipyard Share Price is Rising

May 27, 2024

Share price of the defence shipbuilder has rallied over 75% in the past 10 trading sessions!

Top Dividend Stocks to Consider for 2024 and Beyond

May 16, 2024

Discover the top dividend stocks offering investors a blend of income and long-term growth.

Top 5 Dividend Stocks That Have Been Making Recurring Payments for 20+ Years

May 10, 2024

Dividend stocks make sense now. Here are 5 with the biggest payout ratios over the past 2 decades.

Special Dividend Alert! 2 Stocks Primed for Big Payouts

Apr 27, 2024

Craving Extra Cash? Here are three stocks for your watchlist.