Dividend Per Share Explained | What Is Dividend Per Share? (Calculating DPS With Real Numbers)

In this video, We discuss how to calculate Dividend Per Share (DPS). DPS is an important metric to investors because the amount a firm pays out in dividends directly translates to income for the shareholder, and the DPS is the most straightforward figure an investor can use to calculate his or her dividend payments from owning shares of a stock over time…Enjoy!!!

One plus one equals two what’s up money geeks mr. v here welcome to the video guys so in today’s video i want to answer a question that i’ve actually gotten a lot from people asking me about dividend stocks so the question that i’ve i’ve been getting is how do i know how much i’m gonna get each month or each quarter on dividends i know they give me the the dividend

Yield but how do i know the exact dollar amount that i get every month from the structures i invest in so i don’t want to have to like go through the entire process and i respond to other questions so i’m just gonna do a video here that will kind of help people that are maybe wondering and just wanted to know how to calculate that number so and again in this situation

We’re going to use a hypothetical number because we don’t really have or a specific i don’t want to use a specific company or whatever so using hypothetical numbers you can use this and apply it to every other company that pays dividends that you have in your portfolio so let’s jump into it in on the board here i already have some stuff set up that you can actually

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See so the actually the formula for you to know how much you’re gonna get or did that dividends per share is very simple so it’s d over s where g is the sum of the dividends over a period so it could be a year or it could be a quarter or it could be maybe a month so and that’s what’s what d stands for then your s is just the ordinary share so how many shares of that

Company are out there so the company might have a hundred thousand shares a million shares a billion shares how many of the outstanding shares does this company have so that’s the basic formula for you to be able to calculate the dividends per share again i’m repeating it is just the sum of the dividend over a period that that companies with a payout could be monthly

Or it could be quarterly could be year and then divide that by the outstanding about share so when you saw a simple example here maybe usually and explain is better for you guys so let’s assume that you an investor buys dividend stocks right and that’s what we’re talking about here dividend stocks and you buy say a thousand shares of a company mr. v stocks and i’m

Just you know for example and then assume that on a monthly basis you get dividends from that company and this particular month the company says we’re gonna pay two million dollars in dividends to the shareholders and then the company house they had outstanding number of shares they have 20 million ordinary shares right so if you take this number that’s giving you

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Now you can calculate your dividends per share very easily so basically the the way you’re gonna do this is if you just divide these two million you divide two million over the 20 million shares that are outstanding here so this will probably give something like 0.1 right so that is the dividend appreciate that you would get two you get you get about one cent per

Share but in your case you bought a thousand shares of mr. v so how much are you gonna get at the end of the month when they pay the dividends you take that number and your kids zero point one times one thousand which is the number of shares that you bought and that’s gonna give you about a hundred dollars so at the end of the month if you own a thousand shares

Of mr. v base of this example you get one hundred dollars deposited into your account that is how you calculate dividends per share so if you’re wondering how to calculate it or to know exactly how much you’re gonna get from that company that you bought your dividend stocks this is the formula again just gonna do a quick recap here this is supposed to be a very

Short video dividend share a sequence to d of s where d is the sum of dividends over a period so the company will tell you how much you want to pay over that period that is what you get for d as is their outstanding number of shares that that company has out there and then once you take that and get in our example we say that the company wants to pay two million

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Dollars in dividends for that particular month and then they have 20 million outstanding shares so we take two million divided by 20 million gives you one cents and then if you multiply that by 1,000 you get $100 because you own a thousand shares of mr. v so that’s pretty much the way it works i hope this videos really helpful again i just want to answer this quick

Question i’ve been getting a lot from people asking me how much they’re gonna get it there by a certain amount of shares in a particular dividend paying company so let me know in the comment section we have any other questions or just any any suggestions as to what you want me to cover and as always if you haven’t already subscribe to the channel go ahead and hit

That subscribe button a notification because youtube keeps telling me that 90% of you guys not yet subscribe to my channel i really appreciate it if we can hit that subscribe button any notification on bail so that will not post new videos you’ll get them right away and be able to stay informed and as always guys stay safe wash your hands don’t touch your face

Keep everybody around you safe and i wish you the best and always stay motivated

Transcribed from video
Dividend Per Share Explained | What Is Dividend Per Share? (Calculating DPS With Real Numbers) By Mr. Money Geek