How To Calculate

Learn how to calculate anything
Menu
  • bmi
Home
rate
How to Calculate Dividends Per Share.
rate

How to Calculate Dividends Per Share.

Rosemary Njeri

While a dividend is a distribution of profits by a corporation to its shareholders, dividends per share is the amount of dividend a company pays for every share an investor owns.

The dividend per share (DPS) is an important measure for investors, as it gives them insight as to how much of an income they might generate by investing in a given company.

An increase in DPS shows the management’s team confidence in the company’s future profits.

Formula to calculate dividends per share.

Calculate Dividends Per Share.

Outstanding shares are common stock authorized by the company, issued, purchased and held by shareholders.

Example:

An investor wanted to invest in a company but before that, he wanted to know dividends per share, so she used data from another shareholder in the company. The total annual dividends of the shareholder was Sh. 12,000,000 and the number of the outstanding common stock for the year was 180,000. Calculate the dividend per share of the company.

Calculate Dividends Per Share.

Therefore, the value of the dividends per share is Sh. 66.67.

Share
Tweet
Reddit
Pinterest
Email
Prev Article
Next Article

Related Articles

Calculate Exchange Rate.
An exchange rate is the value of a country’s currency …

How to Calculate Exchange Rate.

Calculate Marginal Benefit.
A marginal benefit is a maximum amount a consumer is …

How to Calculate Marginal Benefit.

Leave a Reply

Cancel reply

Popular Posts

  • How to Calculate Degrees of Unsaturation.
    January 6, 2021 0
  • How to Calculate Buoyant Force.
    January 6, 2021 0
  • How to Calculate Stairs.
    January 6, 2021 0

Categories

learntocalculate.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com.

How To Calculate

Learn how to calculate anything

Pages

  • About Us
  • Contact Us
  • Privacy Policy
Copyright © 2021 How To Calculate

Ad Blocker Detected

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker.

Refresh