Dividends per share is calculated by dividing the total number of dividends paid out by a company (including interim dividends) over a period of time, by the number of shares outstanding.
We can calculate Dividend per share by simply dividing the total dividend to the shares outstanding.
Key Takeaways
Good. A range of 0% to 35% is considered a good payout. A payout in that range is usually observed when a company just initiates a dividend. Typical characteristics of companies in this range are “value” stocks.
Dividends are declared and paid on a per-share basis, with most companies that pay a regular dividend doing it quarterly. There are some exceptions, including a few that pay a dividend every month, but the vast majority of dividend stocks pay in this manner.
In the U.S., most dividends are cash dividends, which are cash payments made on a per-share basis to investors. For instance, if a company pays a dividend of 20 cents per share, an investor with 100 shares would receive $20 in cash. Stock dividends are a percentage increase in the number of shares owned.
Find the dividend per share
For example, if Company C is paid $0.30 per share each quarter, you'd add $0.30 + $0.30 + $0.30 + $0.30 since there are four quarters in a year. This would result in an annual dividend per share of $1.20. This is the numerator in the calculation.
Dividend payouts are payments that a company makes to its shareholders. ... While dividends are usually distributed as cash, some companies provide extra shares as a dividend. Others offer dividend reinvestment plans (DRIPs), which allow shareholders to buy stock with their dividend at a discounted rate.
The general formula for payout ratio is quite simple. Take the company's dividends per share, divide them by earnings per share, and multiply the result by 100 to convert it to a percentage. You can use any time period to calculate a payout ratio.
What's a Good EPS? Generally speaking, a “good” EPS should be a positive figure that has a long track record of consistent growth. As an example, a company's earnings-per-share that has been growing substantially on an annual or quarterly basis can be considered favorable.
P/E = (Stock Price) / EPS =
Generally, the higher the P/E ratio, the more investors are willing to pay for a dollar's worth of earnings from a company. High P/E stocks (typically those with a P/E above 30) tend to have higher growth rates and/or the expectation of a profit turnaround.
The result is assigned a rating of 1 to 99, with 99 being best. An EPS Rating of 99 indicates that a company's profit growth has exceeded 99% of all publicly traded companies in the IBD database.
Yet No Comments