Calculating Dividends per Share - Aussie Stock Forums

1. Calculating Dividends per Share

Hi I have been reading Roger Montgomery's Value-Able and attempting to calculate Intrinsic Values. I am stuck on calculating the dividends per share which is what i need to calculation the payout ratio. When I refer to a Annual Report, they only give the total dividends (in millions) and I am unsure how to bring that back to cents per share correctly. I know Commsec list the dividends per share and the earnings per share in 'research' on each company for current and future years, however I am wanting these figure for past years to see if the IV has risen over time or not.

I would appreciate your help on this very 'beginner' question.

Cheers
Joh.

2. Re: Calculating Dividends per Share

Hello huh and welcome to the forum.

In order to calculate Dividend Per Share (DPS) you need to know the following:

- Dividend amount (DA)
- Number of shares outstanding (SO)

To calculate DPS use the following formula:

DPS = (DA / SO)

As an example:

Say the company has reported \$5,000,000 in dividends and has 7 million shares outstanding.

Your DPS are: 5,000,000 / 7,000,000 = \$0.71 per share