Dividend Per Share (DPS) is the amount of money a company gives its shareholders for each share they own.
It’s like the company saying,
“Thank you for investing in us—here’s your share of the profit!”
What is DPS in Simple Words?
If you own shares in a company and the company makes a profit, it may share a part of that profit with you.
This shared profit is called a dividend, and the amount you get per share is called DPS.
DPS Formula
DPS = Total Dividend Paid ÷ Total Number of Outstanding Shares
It shows how much dividend you’ll get for every share you hold.
Example 1 – Simple DPS
- A company declares ₹10 crore as total dividend
- It has 1 crore shares in the market
- DPS = ₹10 crore ÷ 1 crore = ₹10 per share
So, if you own 100 shares, you’ll get ₹1,000 as dividend.
Example 2 – With Partial Year
If the company pays dividend only for 6 months or declares interim and final dividends, DPS will be the sum of all dividends declared in a year.
Why DPS is Important?
✅ Helps investors know how much income they’re earning from shares
✅ Useful to compare companies—higher DPS can mean better profit sharing
✅ Shows a company’s financial health and shareholder-friendly approach
DPS vs EPS (Earnings Per Share)
| Metric | DPS | EPS |
|---|---|---|
| Meaning | Dividend paid per share | Profit earned per share |
| Use | Shows cash return to investors | Shows company’s profitability |
| Formula | Total Dividend ÷ Shares | Net Profit ÷ Shares |
