Dividend per share (DPS) is the total amount of dividend that can be claimed by shareholder per share outstanding of a company he/she owns. The formula for calculating dividend per share is as follows:
Dividend Per Share = Total Dividends Paid / Number of Shares Outstanding
Dividends are the income shareholders receive from the company based on the number of shares they own. While dividends are usually cash payments, there are other types of dividends such as:
- Property dividends: company issues dividends in the form of an asset such as PP&E.
- Stock dividends: company issues extra shares to shareholders based on the current amount of shares they own.
- Scrip dividends: promissory note which company issues to promising payment in the future.
- Liquidating dividends: the company sells all its assets to pay dividends to shareholders.