What is Dividend Per Share?
The dividend per share is a simple formula that takes the total dividend payment and divides it by the total number of outstanding shares. The shares are good for dividend payments and made to shareholders of record on a certain date. The more shares that are outstanding, the less dividend per share can be captured. The dividend per share is usually payable on a quarterly basis, but there is never a guarantee of a dividend. These payments are not made out of debt obligations, but because shareholders have partial ownership in the company and, as such, are entitled to a share of the profits. If there is an unprofitable year or quarter, a company may not have a dividend to issue. The dividend per share, or DPS, is usually declared every quarter at a meeting of the board of directors or shareholders. Most of the time, after the meeting, the dividend per share is made a matter of public record and could spur an increase in the stock’s value, especially in the short term. In nearly all case
