{"id":7636,"date":"2025-07-11T07:22:41","date_gmt":"2025-07-11T07:22:41","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&#038;p=7636"},"modified":"2025-07-11T07:22:43","modified_gmt":"2025-07-11T07:22:43","slug":"dividend-per-share-dps","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/dividend-per-share-dps\/","title":{"rendered":"Dividend Per Share (DPS)"},"content":{"rendered":"<p><strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/dividend-per-share-dps\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Dividend Per Share (DPS)<\/a><\/strong> is the <strong>amount of money a company gives its <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/shareholders\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">shareholders<\/a> for each share they own<\/strong>.<br>It&#x2019;s like the company saying,<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#x201C;Thank you for investing in us&#x2014;here&#x2019;s your share of the profit!&#x201D;<\/p>\n<\/blockquote>\n\n\n\n<h2 id=\"what-is-dps-in-simple-words\" class=\"wp-block-heading\"><strong>What is DPS in Simple Words?<\/strong><\/h2>\n\n\n\n<p>If you own <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/shares\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>shares<\/a> in a company and the company makes a profit, it may <strong>share a part of that profit with you<\/strong>.<br>This shared profit is called a <strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/dividend\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">dividend<\/a><\/strong>, and the amount you get <strong>per share<\/strong> is called <strong>DPS<\/strong>.<\/p>\n\n\n\n<h2 id=\"dps-formula\" class=\"wp-block-heading\"><strong>DPS Formula<\/strong><\/h2>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>DPS = Total Dividend Paid &#xF7; Total Number of Outstanding Shares<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p>It shows how much dividend you&#x2019;ll get for every share you hold.<\/p>\n\n\n\n<h3 id=\"example-1-simple-dps\" class=\"wp-block-heading\"><strong>Example 1 &#x2013; Simple DPS<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A company declares &#x20B9;10 crore as total dividend<\/li>\n\n\n\n<li>It has 1 crore shares in the market<\/li>\n\n\n\n<li><strong>DPS = &#x20B9;10 crore &#xF7; 1 crore = &#x20B9;10 per share<\/strong><\/li>\n<\/ul>\n\n\n\n<p>So, if you own 100 shares, you&#x2019;ll get &#x20B9;1,000 as dividend.<\/p>\n\n\n\n<h3 id=\"example-2-with-partial-year\" class=\"wp-block-heading\"><strong>Example 2 &#x2013; With Partial Year<\/strong><\/h3>\n\n\n\n<p>If the company pays dividend only for 6 months or declares interim and final dividends, DPS will be the <strong>sum of all dividends declared in a year<\/strong>.<\/p>\n\n\n\n<h2 id=\"why-dps-is-important\" class=\"wp-block-heading\"><strong>Why DPS is Important?<\/strong><\/h2>\n\n\n\n<p>&#x2705; Helps investors know how much income they&#x2019;re earning from shares<br>&#x2705; Useful to compare companies&#x2014;higher DPS can mean better profit sharing<br>&#x2705; Shows a company&#x2019;s financial health and shareholder-friendly approach<\/p>\n\n\n\n<h2 id=\"dps-vs-eps-earnings-per-share\" class=\"wp-block-heading\"><strong>DPS vs EPS (Earnings Per Share)<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Metric<\/th><th>DPS<\/th><th>EPS<\/th><\/tr><\/thead><tbody><tr><td>Meaning<\/td><td>Dividend paid per share<\/td><td>Profit earned per share<\/td><\/tr><tr><td>Use<\/td><td>Shows cash return to investors<\/td><td>Shows company&#x2019;s profitability<\/td><\/tr><tr><td>Formula<\/td><td>Total Dividend &#xF7; Shares<\/td><td><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/net-profit\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Net Profit<\/a> &#xF7; Shares<\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Dividend Per Share (DPS) is the amount of money a company gives its shareholders for each share they own.It&#x2019;s like the company saying, &#x201C;Thank you for investing in us&#x2014;here&#x2019;s your share of the profit!&#x201D; What is DPS in Simple Words? If you own shares in a company and the company makes a profit, it may [&#x2026;]<\/p>\n","protected":false},"author":9,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-7636","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7636","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7636\/revisions"}],"predecessor-version":[{"id":7637,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7636\/revisions\/7637"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7636"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}