Dividend Per Share Calculator

Calculate dividend per share from total dividends paid and shares outstanding. See annual, quarterly, and monthly DPS breakdowns.

Calculate Dividend Per Share

Total dividends paid by the company
Total number of shares issued
How often dividends are paid
Dividend Per Share$3.33
Annual DPS$3.33
Quarterly DPS$0.83
Monthly DPS$0.28
Phin Smith
AUTHORED BY Phin Smith UPDATED
Based on 3 sources
Reviewed by Pavlo Pyskunov
893 people found this helpful

Table of Contents

How to Use This Calculator

Follow these steps to calculate dividend per share for any publicly traded company.

  1. Enter total dividends paid - Find this on the company's cash flow statement or annual report. It represents the total dollar amount distributed to all shareholders.
  2. Enter shares outstanding - Look up the total shares outstanding in the company's latest SEC filing or financial summary page.
  3. Select dividend frequency - Choose how often the company pays dividends: annually, quarterly (most common in the US), or monthly.
  4. Review your results - The calculator displays the DPS along with annual, quarterly, and monthly breakdowns so you can plan your income.

Dividend Per Share Formula

DPS = Total Dividends Paid / Shares Outstanding

Example: A company pays $5 billion in total dividends with 1.5 billion shares outstanding:

  • DPS = $5,000,000,000 / 1,500,000,000 = $3.33 per share
  • Quarterly payment: $3.33 / 4 = $0.83 per quarter
  • Monthly equivalent: $3.33 / 12 = $0.28 per month

Understanding Dividend Per Share (DPS)

Dividend per share is one of the most fundamental metrics for income investors. It tells you exactly how much cash a company distributes for each share of stock held. By dividing the total dividends paid by the number of shares outstanding, you get a clear picture of shareholder returns on a per-unit basis.

Why DPS Matters for Investors

DPS allows investors to compare the dividend-paying capacity of companies regardless of their size. A large-cap company paying $10 billion in dividends may have a lower DPS than a mid-cap paying $500 million, depending on share count. DPS is also the foundation for calculating dividend yield when divided by the stock price.

DPS Growth and Dividend Aristocrats

Companies that increase their DPS for 25 or more consecutive years earn the title of Dividend Aristocrat. Tracking DPS growth over time is one of the best ways to identify reliable income stocks. A steadily rising DPS indicates that management is confident in the company's ability to generate cash and reward shareholders consistently.

Frequently Asked Questions

What is dividend per share (DPS)?

Dividend per share is the total amount of dividends a company pays out divided by the total number of shares outstanding. It represents the dollar amount each shareholder receives for every share they own. For example, if a company pays $2 billion in dividends and has 1 billion shares outstanding, the DPS is $2.00.

How do companies determine their dividend per share?

Companies set their DPS based on several factors including earnings, free cash flow, payout ratio targets, and growth plans. The board of directors declares the dividend amount each period. Mature companies with stable cash flows tend to have higher and more predictable DPS, while growth companies may pay little or no dividend to reinvest profits.

What is the difference between DPS and dividend yield?

DPS is the dollar amount paid per share, while dividend yield is the DPS expressed as a percentage of the stock price. For example, a stock with a $4.00 DPS trading at $100 has a 4% yield. DPS tells you the absolute income per share, while yield tells you the return relative to the price you pay.

Which stocks have the highest DPS?

High DPS stocks are often found in sectors like energy, utilities, real estate (REITs), and financials. However, a high DPS alone does not mean a high yield since it depends on the stock price. Companies like major oil producers and large banks often have some of the highest absolute DPS figures, but always compare DPS alongside yield and payout ratio.

How do I track DPS growth over time?

You can track DPS growth by reviewing a company's dividend history, available on financial sites or in annual reports. Calculate the year-over-year percentage change in DPS to find the growth rate. A compound annual growth rate (CAGR) over 5 or 10 years gives you the best long-term picture of how reliably a company increases its shareholder payouts.

Does a stock split affect DPS?

Yes. When a stock splits, the number of shares outstanding increases while the price per share decreases proportionally. The DPS adjusts accordingly. For example, in a 2-for-1 split, DPS would be halved, but since you now own twice as many shares, your total dividend income stays the same.

Is a higher DPS always better?

Not necessarily. A very high DPS relative to earnings could indicate an unsustainable payout ratio, meaning the company may eventually cut its dividend. The best approach is to look at DPS alongside payout ratio, free cash flow coverage, and historical growth trends to determine whether the dividend is sustainable.

Related Calculators

Yield Calculator Convert per-share to yield percentage
Payout Ratio Calculator See if the dividend is sustainable
Income Calculator Calculate total portfolio income

Convert to yield percentage for comparison

Calculate Yield

Sources

This calculator is based on the following authoritative sources:

  1. Investopedia - Dividend Per Share (DPS) Definition

    Comprehensive guide to understanding dividend per share calculation and significance.

  2. SEC - Investor Bulletin: Dividend Payments

    Securities and Exchange Commission guidance on how dividends work.

  3. Fidelity - Why Dividends Matter

    Educational resource on dividend metrics and income analysis.