A Dividends Per Share (DPS) Calculator helps investors determine the dividend earnings per share of a company. DPS is a crucial metric that shows how much a company pays out to its shareholders relative to the number of outstanding shares. This calculation is essential for evaluating the profitability of dividend-paying stocks and comparing companies based on their dividend policies.
Formula of Dividends Per Share Calculator
For specific time periods:
Annual DPS = Sum of All Dividends Paid in a Year / Weighted Average Outstanding SharesQuarterly DPS:
Quarterly DPS = Total Quarterly Dividends / Number of Outstanding Shares at Quarter Endadjusted calculations:
Adjusted DPS = Total Dividends Paid / (Outstanding Shares - Treasury Shares)For stock splits consideration:
Adjusted Historical DPS = Original DPS / Split RatioFor calculating growth:
DPS Growth Rate = (Current Period DPS - Previous Period DPS) / Previous Period DPSWhere:
- Total Dividends Paid: All dividend distributions to common shareholders.
- Number of Outstanding Shares: Total shares issued and held by shareholders.
- Weighted Average Outstanding Shares: Accounts for changes in share count during the period.
- Treasury Shares: Shares repurchased by the company and not canceled.
- Split Ratio: The ratio at which shares were split (e.g., 2:1 means each share became 2 shares).
- Current Period DPS: The dividends per share in the current reporting period.
- Previous Period DPS: The dividends per share in the prior comparable period.
DPS Reference Table
| Company | Annual DPS (USD) | Quarterly DPS (USD) | Growth Rate (%) |
|---|---|---|---|
| Company A | 2.50 | 0.625 | 5% |
| Company B | 3.20 | 0.80 | 3.5% |
| Company C | 1.75 | 0.4375 | 4% |
This table provides an easy reference for investors to compare dividend-paying companies.
Example of Dividends Per Share Calculator
Let’s say a company paid $10 million in dividends in a year and had 5 million weighted average outstanding shares.
Annual DPS = 10,000,000 / 5,000,000
Annual DPS = $2.00 per shareFor quarterly DPS, if the company distributed $2.5 million in one quarter and had 5 million shares:
Quarterly DPS = 2,500,000 / 5,000,000
Quarterly DPS = $0.50 per shareMost Common FAQs
DPS helps investors gauge a company’s ability to return profits to shareholders and assess long-term financial stability.
Higher DPS often attracts investors, increasing demand and stock price. However, an unusually high DPS might indicate reduced reinvestment in growth.
No, but a company may choose not to pay dividends, resulting in a DPS of zero.