Dividend per share (DPS) is the amount of declared dividends issued by the company for each ordinary share outstanding.
DPS is calculated by dividing the total dividend paid by the business, including interim dividends, over a period of time, usually a year, by the number of ordinary shares in issue.
DPS is an important metric for investors because the amount a firm pays out in dividends translates directly into shareholder income.
A rising DPS over time could also be a sign that the company’s management believes its revenue growth can be sustainable.
Convertible preferred shares are a type of preferred shares that pay dividends and can be converted into ordinary shares at a fixed conversion rate after a certain period of time.
The dividend rate, expressed as a percentage or yield, is a financial ratio showing how much a company pays dividends annually in relation to its share price.
Dividend recapitalization is when a private equity firm issues new debt to raise money to pay special dividends to investors who helped finance the original purchase of the portfolio company.
Dividend yield, displayed as a percentage, is the amount of money a company pays shareholders for holding shares divided by the current price of its shares.
A Dividend Received Deduction (DRD) applies to certain corporations that receive dividends from related entities and mitigates potential triple taxation effects.
Forward dividend yield is the percentage of a company’s current share price that the company expects to pay out in dividends over a specified period of time, usually 12 months.