To calculate the Dividends Per Share (\(DPS\)):
\[ DPS = \frac{D}{S} \]
Where:
Dividends per share are exactly what it sounds like. It’s a ratio of the dividend return on a stock or security and the number of outstanding shares. The larger the dividends per share, the greater the value of the dividends.
Let's assume the following values:
Using the formula:
\[ DPS = \frac{5000}{1000} = 5 \text{ dollars per share} \]
The Dividends Per Share is $5.
Let's assume the following values:
Using the formula:
\[ DPS = \frac{10000}{2000} = 5 \text{ dollars per share} \]
The Dividends Per Share is $5.