Dividend Per Share
Dividend per share (DPS) measures the dividend amount distributed per share, calculated as DPS = Total Dividend Amount / Number of Shares Outstanding. Alternatively, it can be derived as DPS = Earnings Per Share × Dividend Payout Ratio, linking it to a company’s earnings and payout policy. This metric reveals how much dividend income an investor can expect for each share held. By assessing DPS, investors gauge the per-share profit returned to them, aiding in evaluating a stock’s income potential and the company’s approach to distributing profits versus retaining earnings.
Related Terms
Average Daily Trading Volume
Average Daily Trading Volume (ADTV) refers to the number of shares of a particular stock...
Averaging Down
Averaging down is an investment strategy where an investor buys additional shares of a stock...
Lump Sum
A lump sum is a single, one-time payment made in full, rather than in smaller,...
Earnings Per Share
Earnings Per Share (EPS) measures a company’s profit for each outstanding share, calculated as EPS...
Indices
Indices are baskets of financial instruments that gauge their collective performance. For instance, stock market...
Leverage In Stock Market
Leverage is a loan provided by a broker, enabling traders to hold larger positions with...
