A dividend is a distribution of profits by a corporation to its shareholders. Dividends are paid to shareholders as an appreciation of their investment into the business.

**Formula to calculate dividends. **

To calculate dividends, we multiply dividends per share (DPS) by the number of shares (S).

**Example:**

The value of dividends per share of a certain company is Sh. 75, if you own 1000 shares, calculate your future dividends payment.

Therefore, the dividends payment will be Sh. 75,000.