What is the dividend at the share?

Dividend at the share (DPS) is a simple formula that takes the total dividend payout and divides it with the total number of outstanding shares. The shares are good for dividend payments and are undergoing shareholders of the record on a certain date. The more shares are excellent, the less dividends per share can be captured. These payments are not made from debt obligations, but because shareholders have partial ownership in the company and as such are entitled to the share of profits. If there is an unprofitable year or quarter, the company may not have a dividend it will issue. Mostly after the meeting, most of the time becomes a matter of public record and can stimulate an increase in the value of shares, especially in the short term. In almost all cases, dividends calculates the company so that shareholders know exactly what it is worth and when it will be paid.

Dividends

are very important to some shareholders because they are onefrom the primary ways to make money on the stock market. In fact, some investors can buy stocks and keep it for a relatively short time just to take advantage of this payment. These dividends can be very valuable, especially for those who buy a large number of shares.

It is important to realize that dividend at the share is often considered to be a cumulative annual payment, even if it is paid quarterly. For example, if 1 quarter is paid $ 1 in USD (USD), the annual dividend per share would be $ 4. However, the company does not have to say that this is an annual issue. Therefore, if the investor is conducting his research, he should carefully notice what the company is precisely defined.

This number is often a measure of company performance, simply because it shows how profitable the company has been over a quarter or year. Companies often compare performance in every quarter with what he has done in the same quarter of the last year. This may also include a dividend comparison at the previous year's share.