Dividend Per Share

Dividend Per Share (DPS) is the total dividend declared by a company in a financial year — including interim and final dividends — divided by the total number of outstanding equity shares, representing the rupee amount of dividend income received per share held by an investor. DPS is calculated as: DPS = Total Annual Dividends Declared ÷ Total Outstanding Shares. For example, if a company declares a ₹10 interim dividend and a ₹15 final dividend on its 10 crore outstanding shares, the annual DPS is ₹25. DPS is a key metric for income-focused investors evaluating the cash income generated by their equity holdings. Unlike the dividend yield (which relates DPS to the current share price and varies with price movements), DPS is an absolute measure that directly reflects the company's dividend policy and financial health. The dividend payout ratio — DPS divided by Earnings Per Share — shows what proportion of profits the company distributes versus retains for reinvestment. In India, SEBI mandates listed companies to pay declared dividends within 30 days of the declaration date. Growing DPS over time — particularly when the growth is funded by expanding earnings rather than reducing reinvestment — is a positive signal of business quality, cash flow generation, and management's commitment to shareholder value creation. Companies like Infosys, TCS, Coal India, and Power Grid Corporation have historically maintained strong and growing DPS track records for Indian income investors.