7. Dividend Per Share (DPS)
Dividend is generally declared as a percentage of the face value of the shares. It is the portion of profit which the company distributes amongst its shareholders.
Example:
40% dividend declared by company will translate into a dividend of Rs. 4 per share with a face value of Rs 10 (10*40% = 4). This is known as Dividend Per Share (DPS).
How to Analyse:
Dividends given by the company indicates the fair practice by the management of the company in distributing profits of a company to share holders. But note that – dividend yield alone should never be used for analysing how good a company, its best recommended to analyse it along with combination of other factors discussed here.
