What is DPS in finance?

Answered on : 2024-01-23

Sources

Dividend Per Share (DPS) Definition and Formula

investopedia.com

1

Earnings Per Share (EPS) vs. Dividends Per Share (DPS)

investopedia.com

2

DPS stands for Dividend Per Share. It is a financial metric that represents the sum of declared dividends issued by a company for every ordinary share outstanding. DPS is calculated by dividing the total dividends declared in a period by the number of outstanding ordinary shares issued [1].

Dividends are payments made by a company to its shareholders as a distribution of profits. DPS is an important measure for investors as it indicates the amount of cash they can expect to receive for each share they own. It is often used to assess the profitability and financial health of a company.

DPS should not be confused with EPS (Earnings Per Share), which represents the company's earnings divided by the number of outstanding shares. While EPS focuses on profitability, DPS focuses on the distribution of profits to shareholders [2].

References:

1. Dividend Per Share (DPS) Definition and Formula

2. Earnings Per Share (EPS) vs. Dividends Per Share (DPS)

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