Dividend per share (DPS) ratio formula & calculator to find the ratio between the sum of total dividends to total number of outstanding shares of a company. It's one among the important investors' tools to determine how much return on investment is generated by each shares of a company. It's often abbreviated as DPS ratio. It is one of the important measurements to determine how much return on investment is earned from each shares of a company. The history of DPS ratio of a company helps investors to determine the stability of a company. A higher dividend per share ratio generally indicates that the company is making more profit and provides more dividends on each shares of a company, and a lower DPS ratio indicates that the company is less profitable and provides diminished dividends on each shares of a company.
Formula
DPS (Dividend per Share) Ratio = Sum of Total Dividends/Total Number of Outstanding Shares