How do the dividends per share compare with the groups earning per share?
submitted by Dolma Gurung
constantine
Dividends per share (DPS) are the actual cash distributed to shareholders. Earnings per share (EPS) are the company's profitability on a per-share basis.
DPS is often less than EPS because companies tend to retain some earnings for growth rather than distribute all profits as dividends. Investing back into the company in order grow it, in other words.
Rahnald
Dividends per share is how much of each share gets paid out. Earnings per share is how much profit the company made per share.
As an investor, you'd be most interested in dividends per share because that's what gets paid back to you. However, earnings per share is important because the company can use that to buy new equipment, make new products, run advertising, etc.
Ted
EPS = a company's profit per share
DPS = cash paid to shareholders per share
EPS is about how much the company makes. DPS is how much you make as an investor. You want to see both of them high.
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