Dividend per share is the amount of dividend a shareholder receives on one share. For example, IBM paid $600,000 as dividends among all 300,000 shareholders.
The dividend per share will be calculated as follows:
Dividend per share = Dividend paid / Number of outstanding shares
Dividend per share = $600,000 / 300,000 = $2.00 per share
Dividend per share is also used as a measure for investors to assess the return on a stock. As a dividend is paid on shares, a new shareholder can assess the return a single share is offering. Assume one share of IBM is trading at $27.00 and dividend per share is $2.00, this means dividend yield is 7.4% ($2.00 / $27.00). This yield can be compared with other stocks based on dividend yield.
Pecan Theatre Inc. owns and operates movie theaters throughout Florida and
Comparative financial statements for Weller Corporation, a merchandising company, for
Selected transactions completed by Equinox Products Inc. during the fiscal year
Deere & Company manufactures and distributes farm and construction machinery that it
Growth Company’s current share price is $20 and it is expected
Buena Terra Corporation is reviewing its capital budget for the upcoming year
Rubenstein Bros. Clothing is expecting to pay an annual dividend per
Suppose Tom O’Bedlam, president of Bedlam Products, Inc., has
Pasqually Mineral Water, Inc., will pay a quarterly dividend per
Refer to the data in Exercise 1 for Weller Corporation.
