Fundamental Glossary / Dividend Metrics
Dividend Per Share (DPS)
The cash dividend declared for each share over a period.
Formula
Total dividends / shares eligible for the dividend. Interim and final dividends are added for a full-year DPS. Special dividends are usually shown apart.
What it means
DPS is the income a single share receives. It is the numerator of dividend yield and the series used for dividend growth.
A bonus issue or split cuts DPS in proportion. Historical series have to be adjusted or the growth rate is wrong.
How to read it
A rising DPS, covered by rising free cash flow, is a stronger signal than a rising DPS paid out of a flat profit.
What to watch
Do not add a special or a one-time jubilee dividend into the regular DPS and then project it. The board has not promised to repeat it.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.