Dividend Per Share Calculator
Calculate dividend per share (DPS) by dividing total dividends paid by the number of shares outstanding. Also see annual yield when you provide the current share price.
How to use this tool
- Enter total dividends paid, shares outstanding and current share price (optional, for yield) in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your dividend per share (dps) and the full breakdown beneath it.
⚠ This tool provides general estimates for education only and is not financial, tax or legal advice. Figures may not reflect your situation — verify with a qualified professional.
Formula
Dividend Per Share: DPS = Total Dividends / Shares Outstanding
Dividend Yield: Yield = DPS / Share Price × 100
How it works
Dividend per share (DPS) measures the total dividends distributed by a company divided by the total number of shares outstanding. It represents the income an investor receives per share held during the period. Dividend yield expresses DPS as a percentage of the current share price, allowing comparison of dividend income across stocks with different price levels.
Worked example
Company Dividend Distribution
- Total dividends paid: $500,000; Shares outstanding: 100,000; Share price: $50
- DPS = $500,000 / 100,000 shares = $5.00 per share
- Dividend yield = $5.00 / $50.00 × 100 = 10.00%
Dividend per share is $5.00, and the dividend yield is 10.00% at the current price of $50.
Common mistakes to avoid
- Dividing total dividends paid by shares authorized rather than shares outstanding, dramatically understating DPS for companies with large blocks of authorized but unissued shares.
- Including stock dividends or stock splits as if they were cash dividends, inflating apparent DPS -- this metric covers cash dividends only.
- Using trailing DPS to project forward yield without adjusting for recent dividend cuts or special dividends that distort the trailing twelve-month figure.
Key terms
- What is dividend per share (DPS)?
- Dividend per share is the total amount of dividends declared by a company for each ordinary share outstanding. It is calculated by dividing total dividends paid by total shares outstanding.
- What is dividend yield?
- Dividend yield is the annual dividend per share expressed as a percentage of the current share price. It measures the cash income return on an investment in the stock.
- What are shares outstanding?
- Shares outstanding are all shares of a company's stock currently held by shareholders, including institutional investors and company insiders. They exclude treasury shares held by the company itself.
- Why do companies pay dividends?
- Companies pay dividends to distribute a portion of earnings to shareholders. Dividends signal financial health and provide income to investors, particularly appealing to income-focused or conservative investors.
Frequently asked questions
- What is the difference between dividend per share and dividend yield?
- DPS is an absolute dollar amount paid per share annually. Dividend yield is DPS / Current Share Price, expressed as a percentage. Yield is more useful for comparing income across differently priced stocks; DPS tracks a company's dividend policy over time.
- How are dividends taxed in the U.S.?
- Qualified dividends (from U.S. corporations held for more than 60 days) are taxed at long-term capital gains rates (0%, 15%, or 20%). Ordinary dividends are taxed at regular income tax rates. Non-qualified dividends from REITs are generally ordinary income.
- What does a dividend increase signal?
- A dividend increase typically signals management confidence in future earnings and cash flow. Consistent dividend growth (such as Dividend Aristocrats with 25+ consecutive years of increases) is associated with financially strong, shareholder-friendly businesses.