prakash_dudes
Prakash Pohwani
What is Dividend Per Share and when is a investor liable to get dividend?
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 is reflected by their shareholdings in the company. The dividend per share shows how much the company has paid out on each individual share, and so is worked out as:-
DIVIDEN PER SHARE =
Dividends paid /
Total number of shares issued
Some companies pays dividend after 3months, while some after 6months and some after a whole year.
Note:It is not mandatory for a company to declare dividend if earned profits.
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 is reflected by their shareholdings in the company. The dividend per share shows how much the company has paid out on each individual share, and so is worked out as:-
DIVIDEN PER SHARE =
Dividends paid /
Total number of shares issued
Some companies pays dividend after 3months, while some after 6months and some after a whole year.
Note:It is not mandatory for a company to declare dividend if earned profits.