Dividend per share definition

Shows how much of a company’s total dividend is paid out for each share that an investor holds.

What is dividend per share?

Dividend per share shows how much of a company’s total dividend is paid out for each share that an investor holds. It can be used to show the expected annual dividend return on your investment - if the company pays one.

Learn how to invest

Find out about investing with Moneybox

Let's go

What’s a good dividend per share? 

You’d typically want a higher dividend per share, as this indicates that a company pays out more of its profit to shareholders on an annual basis. But, some investors are willing to accept a lower dividend if the company reinvests the money back into its business operations to encourage future growth. 

That’s because in the long term, this could result in a higher share price in the future and a higher potential return on their initial investment. 

 

How is dividend per share calculated? 

The dividend per share formula takes the total dividends paid by a company and divides it by the total number of shares the company has. It looks like this: 

Companies will often announce the total dividend paid just after it is paid to shareholders. You can find the number of shares in circulation by typing a company’s name, followed by ‘number of shares outstanding’ into a search engine. 

Here’s an example of how to calculate dividend per share. Let’s say a company has announced dividends of $1,000,000 have been paid out to customers, and the company has 2,000,000 shares in circulation. Using the formula, you’ll find that the dividend per share is $0.50.

H2What is dividend per share?
OverviewDividend per share shows how much of a company’s total dividend is paid out for each share that an investor holds. It can be used to show the expected annual dividend return on your investment - if the company pays one.

Explore our range of stocks

Invest directly in Apple, Tesla, Alphabet and more today.

Let’s go

Investing glossary

It's important you know

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest.

Risk Warning
Get the app