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What is Reported Dividend Per Share?
Since the shareholders are the owners of the business, they are entitled to their share of the profits. This is paid out as a dividend, and is usually expressed as an amount per share. This is because the total amount a shareholder gets has to reflect their share of the company. If they are only a small shareholder and do not own many shares, they should only get a small share of the
profit.
The dividend per share shows how much the company has paid out on each individual share, and so is worked out as:-
| DIVIDEND PER SHARE = |
Dividends paid |
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Total number of shares issued |
It is important to be aware that the dividends paid figure is that for the whole year. Some companies pay out interim dividends after six months, and this should be included as well as the year end figure.
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